Shares in Target rose 12 percent in premarket trading Tuesday after the US department store chain reported strong fourth-quarter sales and an optimistic 2022 outlook.
Sales in the three months to the end of January increased 9 percent year-over-year to 30.6 billion dollars, while sales in the full year were up 13 percent to 104.6 billion dollars.
The retailer, which has prospered during the pandemic, saw its Q4 net income rise 12 percent to 1.54 billion dollars, and full-year net income increase 59 percent to 6.9 billion dollars.
“Our strong fourth-quarter performance capped off a year of record growth in 2021, reinforcing the durability of our business model and our confidence in long-term profitable growth,” said Target CEO and chair Brian Cornell in a statement.
For fiscal year 2022, Target now expects low- to mid-single digit revenue growth, and high-single digit growth in adjusted earnings per share.
But the retailer also warned it expects first quarter 2022 operating margin rate to be below its first quarter 2021 rate of 9.8 percent.
Cornell continued: “As we look ahead, we'll keep investing and delivering on all that has earned the loyalty and trust of our guests; that starts with our outstanding team and includes continued differentiation through affordability, assortment, ease and convenience.”