Target jumps after hitting earnings mark Retail stocks had a good day even as the overall US market fell on better than expected results, ahead of the key holiday shopping season. Target, one of America's largest retailers, was rewarded by investors after topping third-quarter profit and sales estimates. The company reported net income of $352m or 55 cents a share, compared with $341m or 54 cents a share, in the year-ago period. Sales climbed nearly 3 per cent to $17.7bn. Wall Street analysts were looking for earnings of 45 cents a share on sales of $17.6bn. Same-store sales gained 1.2 per cent ahead of estimates for a 0.5 per cent gain. Target, which was subject to a data breach last year, has incurred total net breach-related expenses of $158m since the fourth quarter of 2013. Target's expansion into Canada showed some signs of improvement. Sales climbed nearly 44 per cent to $479m but the Canadian segment reported a loss of $211m before interest and taxes. This was, however, better than a loss of $238m in the year-ago period. The retailer expects fourth-quarter adjusted earnings in the range of $1.13-$1.23 a share, with the lower end of the range below analyst estimates for $1.23 a share. It now expects full-year earnings of $3.15-$3.25 a share, narrower than its previous forecast for $3.10-$3.30. Target shares gained 7 per cent to $72.50, pushing its year-to-date gain to nearly 12 per cent. Meanwhile, the S&P 500 retailing industry group index gained 1.2 per cent. Staples was the best-performing stock on the S&P 500 after the retailer topped third-quarter sales expectations. The office supplies chain reported net income of $216.8m or 34 cents a share in the quarter ended November 1 compared with $135.2m or 21 cents a share in the year-ago period. Sales slipped 2.5 per cent to $5.96bn. Wall Street analysts were looking for earnings of 44 cents a share on sales of $5.93bn. Adjusted earnings of 37 cents a share, however, topped estimates for 36 cents a share. Comparable-store sales declined 4 per cent. "We are impressed with the efforts of management to reposition the company but remain concerned with intensifying sector headwinds," said Brian Nagel, an analyst at Oppenheimer. Shares of Staples gained 9 per cent to $13.92. Investors pushed Lowe's higher after the home improvement retailer beat third-quarter estimates. Net income of $585m or 59 cents a share, on sales of $13.7bn, beat expectations for earnings of 58 cents a share, on sales of $13.5bn. Lowe's said it expects full-year sales up 4.5-5 per cent, ahead of its forecast for 4.5 per cent growth, and the Street's expectations for 4 per cent growth. Full-year earnings per share of $2.68 beat estimates for $2.63. Shares of Petsmart, the largest US pet supplies retailer, gained 6 per cent to $78.19 after the company beat adjusted third-quarter earnings expectations. Shares of Paramount Group gained as much as 5.7 per cent to $18.50 in its trading debut. This was the largest public offering by a US real estate investment trust. US stocks slipped lower on Wednesday, as the Federal Reserve minutes provided few new policy hints. The S&P 500 index fell 0.2 per cent to 2,048.72, the Dow Jones Industrial Average was unchanged at 17.685.73 and the Nasdaq Composite fell 0.6 per cent to 4,675.71.