Target beat analyst estimates on Q4 sales and earnings as it works towards a brighter 2024.
Target on Tuesday reported a 58% increase in fiscal fourth-quarter profits that handily beat Wall Street expectations as the discounter cut costs while keeping its inventory lean. Comparable sales — those from stores or digital channels operating at least 12 months — slipped 4.4%. The results came out just hours ahead of Target's annual investor meeting that should offer clues about its strategies for improving sales to customers being squeezed by inflation and high borrowing costs.
Target wrapped up a challenging 2023 with a top- and bottom-line beat, setting the stage for a better 2024 ahead of the retailer’s annual meeting with investors. The company’s fourth-quarter adjusted net earnings jumped 57.8% year over year to $1.38 billion, or $2.98 per diluted share. As in Target’s previous quarter, the company reaped the benefits of having leaner inventories as it recovers from the overstocking that dinged profitability in the second half of 2022.