Earnings

Target is set to report quarterly earnings before the bell Tuesday.

Here’s what Wall Street is expecting, based on a poll of analysts by Refinitiv:

* Earnings per share: $1.12
* Revenue: $17.80 billion
* Same-store sales: up 5.2 percent

Target has a lot of momentum heading into this holiday season, with CEO Brian Cornell recently saying the consumer environment hasn’t been this strong in his career.

The retailer during the second quarter reported “unprecedented” growth in foot traffic at its stores, along with the strongest same-store sales growth in 13 years.

Target has been pouring money into store renovations, while opening up smaller-format locations in urban cities and college towns. It continues to add more in-house brands for apparel and home goods, which offer higher margins than national labels. And it’s investing in its supply chain to be more competitive with Walmart and Amazon. This holiday season, for example, Target is dropping its minimum purchase threshold for free, two-day shipping, while Walmart still has a $35 threshold.

“We think [Target’s] unique mix of consumables and high-margin apparel/home decor leave it well-positioned to take share from at-risk retailers,” KeyBanc analyst Edward Yruma said in a research note, predicting there is as much as $17 billion in “at risk” retail sales up for grabs.

Private brands like A New Day for women’s apparel and Project 62 for home decor are a “key differentiator” for Target, Yruma wrote. “Private brands are an increasingly important way to combat Amazon and build overall customer loyalty.”

Target shares have rallied more than 35 percent over the past 12 months, bringing its market cap to roughly $41.1 billion.

This is a developing story. Please check back for updates.

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