Target Q4 Comp Sales Decline As Earnings Rise
Fourth quarter sales at Target were up slightly, but the retailer reported a decline in comparable store sales for the three month period ended February 3.
Total revenue in the quarter was $31.9 billion, up 1.7% over the comparable quarter from the previous year. The increase was driven by sales growth of 1.6% and a 9.8% increase in other revenue. Sales growth reflected an additional week in fiscal year 2023.
Total company comparable sales declined 4.4% in the fourth quarter, reflecting comparable stores sales declines of 5.4% and a comparable digital sales decline of 0.7%.
Net earnings in the quarter were $1.4 billion, an increase of 57.8% year-over-year. Diluted earnings per share were $2.98, an increase of 57.6% form the comparable quarter the previous year.
“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 Brian Cornell, chairman and chief executive officer of Target Corporation. "Throughout the season, guests responded to newness, value, and the inspiration and ease of our in-store and digital shopping experience.”
Full-year sales decreased 1.7% to $105.8 billion from $107.6 billion last year, reflecting a 3.7% decrease in comparable sales partially offset by sales from non-mature stores and an additional week in 2023. Full-year total revenue of $107.4 billion decreased 1.6% compared with 2022, reflecting a 1.7% decline in sales partially offset by a 5.1% increase in other revenue.
Full-year net earnings were $4.1 billion, an increase of 48.8% year-over-year. Diluted earnings per share were $8.94, up 49.4%.
For the first quarter of 2024, the company expects a comparable store sales decline of between 3% to 5%. For the full year, the company expects a modest increase in comparable sales in a range from flat to 2%.
Looking ahead, Cornell said Target will continue to invest in the strengths and differentiators that have delivered strong financial performance over time.
“We'll also roll out fresh innovations, including our new Target Circle membership program, as part of our roadmap for growth aimed at meeting consumers where they are, reigniting sales, traffic and market share gains, and positioning Target for profitable growth in 2024 and beyond,” he added.
