Target Corporation reported its fourth quarter earnings in line with street expectations. Earnings for the quarter rose 12.5 per cent to US $ 1.53 per share, even as revenue remained flat at US $ 22.9 billion. Analysts had predicted earnings of US $ 1.53 per share on revenue of US $ 23.15 billion. On a GAAP basis, earnings fell to US $ 1.52 per share from US $ 1.99 per share in the same quarter last year.
Comp sales came in at 5.3 per cent, higher than the 5 per cent projected by the management. Last month, the company said its comparable sales for the November and December period grew 5.7 per cent, helped by strong traffic and positive store comps.
Comparable digital sales grew by 31 per cent in the fourth quarter. In the November/December period, comp sales had improved 29 per cent fuelled by store-fulfilled digital sales growth. For the full year, digital sales jumped 36 per cent, marking the fifth consecutive year of more than 25 per cent growth.
“We’re pleased with our fourth quarter performance, which capped off an outstanding year for Target. Thanks to the dedication of Target’s team, we delivered our strongest traffic and comparable sales growth in well over a decade and our 2018 adjusted EPS set a new all-time record for the company.” – Brian Cornell, Chairman & Chief Executive Officer, Target Corporation
“We have been driving an ambitious agenda to transform our company, evolve with our guests and drive strong growth. On every count we’ve been successful, and as we enter 2019, we will continue to lead the industry by adapting, innovating and delivering more for our guests and shareholders.”
Target was among the few retail players that did relatively well during the last holiday quarter, which was the slowest since 2009.
The company saw the strongest growth in toys, baby products, and seasonal gift items during the holiday period. Target has also been taking measures to improve its delivery service, and the acquisition of Shipt has benefited the company in this area.
Minneapolis-based Target Corporation caters to its customers through more than 1,800 stores and at Target.com. Since 1946, Target has given 5 per cent of its profit to communities, which today equals millions of dollars a week.
