Target shares jump after strong Q4, but FY sales slip

Shares in Target surged in pre-market trade on Tuesday after the American retail giant beat forecasts with its crucial holiday-quarter results despite seeing annual sales decline for the first time in seven years.

Target Corp.
05 March 2024 14:17:39

Source: Sharecast

Revenues in the fourth quarter were up 1.7% year-on-year at $31.9bn, ahead of the $31.8bn expected by the market, while adjusted earnings per share surged 57.6% to $2.98, significantly above the guidance range of $1.90-2.60 and the consensus forecast of $2.42.

"Our team's efforts changed the momentum of our business, further improving our sales and traffic trends in the fourth quarter while driving profitability well ahead of expectations," said chairman and chief executive Brian Cornell.

However, comparable sales, which excludes the impact of store openings and closures, were down 4.4% year-on-year.

For the full year, sales were down 1.7% at $105.8bn – the first decline in annual sales since 2016.– with comparable sales dropping 3.7%, while operating income jumped 48.3% to $3.8bn.

Looking ahead, Target guided to a comparable sales decline of 3-5%, but said it expected a "modest increase" over 2024 as a whole, ranging from 0-2%.

Pre-market shares were up 9.6% at $164.90 by 0905 in New York.

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