The shares of Target Corp. plunged more than 10% this morning, almost offsetting the gains of the year, after a sharp rise in its latest profit that missed investor expectations for even more.

Target's adjusted earnings per share were $ 1.09 on sales of $ 17.82 billion for the quarter ending November 3, the third of its fiscal year. Analysts were expecting earnings per share of $ 1.12.

Target, based in Minneapolis, has invested heavily in store refurbishment and back-office operations to improve shipping times, delivery options, and in-store collection times. These expenses contributed to a 3.3% decrease in operating income.

"Although regrettable, we believe this decline is necessary to support Target's growth ambitions," said Neil Saunders of GlobalData Retail in a report. "Some on Wall Street may lament the plunge, but the truth is that you can not reinvent a cheap retailer – Target does not do that and we congratulate them."

The company's results represent Globally the best third quarter of Target in ten years.

Same store sales increased 5.1% in the third quarter. Digital controls – from people buying from the company's website or from various mobile phone applications – have contributed to more than a third of that growth.

Overall, online sales jumped 49% from the previous quarter. Some of the costs associated with such a jump, including increased shipments, reduce profit margins.

The company is in the final stages of a $ 7 billion three-year plan to reorganize its stores and online businesses, transforming its stores into order fulfillment centers that accelerate deliveries and reduce sales. shipping costs.

During a teleconference with investors, Target's CEO, Brian Cornell, sought to allay his fears by insisting on a two to three year horizon for all the benefits to flow.

"If we were in a football match, we are still in the first quarter," said Cornell. "But I like the points we put on the board."

With consumers expecting instant gratification and low-cost convenience. Target has begun offering a two-day free delivery in November and will continue throughout the holiday shopping season.

This is a move that has forced competitors Walmart and Amazon to follow, but will force the company to look for savings elsewhere to keep prices competitive. The technology improves the productivity of its employees, who can be seen navigating the aisles of stores with handheld devices picking up merchandise for customers.

Target expects fourth quarter sales to increase 5% over last year, roughly in line with the pace recorded in the third quarter. It has maintained annual earnings per share of between $ 5.30 and $ 5.50.

Net income was $ 622 million, or $ 1.17 per share, compared with $ 478 million or 87 cents a share a year ago.

Despite the tightening of the labor market for a generation, Target has stated that it has achieved its hiring goal of recruiting 120,000 seasonal workers, the largest share of any other retail chain, and an increase of 20 percent. % compared to last year.

As the holidays approach, the company has completed 300 store renovations. She quickly set up her transport service, which, according to the company, was a hit with consumers.

The service went from a pilot project of 50 stores in twin cities last year to 1,000 stores. It will also be available for Thanksgiving and Black Friday.

Competition in the toy sector continues to be a major concern for the retailer, who has reported gains in the third quarter following the closure of Toys "R" Us.

Half of Target's annual toy sales took place during the fourth quarter, and the retailer strengthened its inventory, turned toy areas into 100 stores and added more space in another 500 key locations.