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Target: Q4 comparable sales increase 3.6 percent

By Prachi Singh

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Business

Fourth quarter sales increased 10 percent at Target to 22.8 billion dollars, reflecting the impact of an additional week in this year’s fourth quarter, a 3.6 percent increase in comparable sales, and sales in non-mature stores. Comparable digital channel sales grew 29 percent and contributed 1.8 percentage points of comparable sales growth. Segment EBIT were 1,152 million dollars in fourth quarter, a decrease of 14.3 percent from 1,344 million dollars in 2016.

“ Our team’s outstanding execution of Target’s strategic initiatives during the year delivered strong fourth quarter traffic growth in our stores and digital channels, which drove healthy comparable sales in every one of our five core merchandise categories,” said Brian Cornell, Chairman and CEO of Target Corporation in a press release.

Target reported GAAP EPS from continuing operations of 2.02 dollars in fourth quarter and 5.32 dollars for full-year 2017, compared with 1.46 dollars and 4.58 dollars in 2016, respectively. Fourth quarter adjusted EPS were 1.37 dollars, compared with 1.45 dollars in 2016, while full-year adjusted EPS were 4.71 dollars compared with 5.01 dollars in 2016.

Fourth quarter EBIT margin rate was 5.1 percent, compared with 6.5 percent, in 2016 and gross margin rate was 26.2 percent, compared with 26.6 percent in 2016, reflecting pressure from digital fulfillments costs.

Expects low-single digit rise in FY18 comparable sales

In first quarter 2018, Target expects a low-single digit increase in comparable sales, and both GAAP EPS from continuing operations and adjusted EPS of 1.25 dollars to 1.45 dollars.

For full-year 2018, Target expects a low-single digit increase in comparable sales, and both GAAP EPS from continuing operations and adjusted EPS of 5.15 dollars to 5.45 dollars.

Picture credit:Target

Target