Target aims to open more stores: Report
FOX Business’ Jackie DeAngelis discusses Target’s strategic move to open stores in wealthier areas.
Target reported mixed fourth-quarter results, sending shares lower.
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The Minneapolis-based big-box retailer’s fourth-quarter profit rose 4.4 percent from a year ago to $834 million, or $1.63 a share. Adjusted earnings were $1.69, topping the $1.66 average estimate from analysts surveyed by Refinitiv.
Revenue of $23.4 billion, however, trailed projections of $23.5 billion.
Comparable sales, including e-commerce, grew 1.5 percent year-over-year, boosted by same-day services, which accounted for more than 80 percent of the company’s digital sales growth.
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"With 11 consecutive quarters of positive comparable sales growth, driven by healthy performance in both our stores and digital channels, Target's results demonstrate that we've built a sustainable business model that drives strong top-line growth and consistent bottom-line performance," CEO Brian Cornell said in a statement.
For the full-year, Target earned $3.28 billion, up 11.7 percent from the prior year, on revenue of $77.13 billion. Comparable sales, including online, were up 3.4 percent from a year earlier.
Looking ahead, the company sees first-quarter comparable sales increasing by low single digits and earnings of $1.55 to $1.75 a share.
Full-year comparable sales are expected to rise by low single digits, and the company predicts full-year earnings of $6.70 to $7 a share.
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Target shares tumbled 14.9 percent this year through Monday, worse than the S&P 500's 4.4 percent decline.
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