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KEY TAKEAWAYS
- Target shares surged over 11% in early trading Tuesday as the retailer posted stronger-than-expected earnings for the fourth quarter of 2023.
- The retail giant reported net income of $1.38 billion, up 57.8% from the year-ago quarter and well above analyst expectations and Target’s own guidance.
- Lower costs and improved inventory management helped boost Target’s profit while sales rose.
- However, the company warned of a decline in comparable sales in the current quarter.
- Target also said it plans to roll out a new membership program.
Target (TGT) shares surged over 11% in early trading Tuesday as the company posted stronger-than-expected earnings for the fourth quarter of fiscal 2023.
The retail giant reported net income of $1.38 billion, up 57.8% from the fourth quarter of 2022 and well above Target’s own guidance and analyst estimates compiled by Visible Alpha. Earnings per share (EPS) at $2.98 also surpassed estimates as revenue rose 1.7% from a year ago to $31.9 billion, beating projections.1
The company said that the higher profit came in part as a result of lower costs and improved inventory management, and outlined plans to introduce a new membership program as part of its Target Circle rewards program.
For the full year, the retailer reported a 1.6% decrease in total revenue to $105.8 billion from $107.6 billion in 2022, as comparable sales fell 3.7%.
Target issued guidance for the current quarter projecting a comparable sales decline of 3% to 5%, along with EPS of $1.70 to $2.10.
Shares of Target were up 11.8% at $168.24 as of 9:40 a.m. ET Tuesday. They’ve gained close to 18% so far this year.
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