Target reports early 2024 fourth-quarter holiday sales earnings | Wilnesh News

Target The company on Thursday raised its fourth-quarter sales forecast after more consumers turned to its stores and website for holiday shopping, especially on a day known for deep discounts.

The big-box retailer now expects comparable sales to grow about 1.5% in the fiscal fourth quarter. That’s better than its recent forecast that the metric would be roughly flat. Comparable sales include sales from Target’s website and stores open at least 13 months.

However, the Minneapolis-based discounter has not improved its profit outlook — a sign that the promotions are motivating shoppers. Target expects fourth-quarter earnings per share to be between $1.85 and $2.45, and full-year earnings per share to be between $8.30 and $8.90. Target will report full fourth-quarter earnings results on March 4.

Target cut its profit guidance in early November after posting its biggest earnings decline in two years, blaming some of its troubles on weak sales of discretionary items and the cost of preparing for a brief recession. October port strike.

Target’s report is the latest glimpse into a crucial season for the industry. Data so far suggests things are better than expected, but investors are not impressed. lululemon, Abercrombie & Fitch and american eagleFor example, all companies raised their fourth-quarter forecasts on Monday, but some of them saw their stock prices fall on the day.

Nordstrom On Friday, the company raised its full-year sales forecast, but had previously been more conservative. and department store rivals macy’s department store On Monday, it said its sales would be at or slightly below its lowest level The previously specified range was between $7.8 billion and $8 billion.

The National Retail Federation, the industry’s main trade group, is expected to report a holiday sales review on Thursday.

Discounts and sales are still available That’s an important sales driver as consumers shake off more than two years of high inflation. It’s unclear how much the deals will cut into profit margins at Target and other retailers, or whether sales will continue to improve if the promotions disappear.

Target said combined sales in November and December were up 2.8% annually, and comparable sales were up 2% annually. Compared with last year’s holiday period, digital sales grew nearly 9%.

Several growth areas at Target contributed to holiday sales. Its subscription service Target Circle 360​​ drove same-day delivery volume to increase by more than 30% year-on-year in November and December. During the same period, sales at Target Plus, the company’s third-party marketplace, grew by nearly 50%.

The company said visitor traffic during the two holiday periods was up nearly 3% compared to the same period last year, as online and in-person visits increased. Target said December traffic increased year over year for the eighth consecutive month.

Target has taken aggressive steps to attract selective shoppers. In May, it stated that it would Approximately 5,000 frequently purchased items have reduced pricesincluding diapers, bread and milk. The company then announced another wave of price cuts on more than 2,000 items during the October festival, including cold medicine, toys and ice cream. By the end of the holiday season, more than 10,000 items will be marked down this year, the company said.

Target said in a news release Thursday that Black Friday and Cyber ​​Monday sales hit record highs. The company said there was “significant sales acceleration” in discretionary categories, particularly apparel and toys, compared with the fiscal third quarter. These categories tend to have higher margins than staples like milk and paper towels, but are often discounted during the holidays.

Target’s chief operating officer, Rick Gomez, said in a speech at NRF’s annual “Big Show” conference on Monday that the company’s sales have grown significantly. Sale days, such as the Circle Week event in early October, coincide with Amazon Prime Day.

“This is one of our largest circles We’ve had situations like this before,” he said. “But sales before and after the week are lower. Sales are down. Consumers are very intentional.

He said U.S. consumers are “budgeting” but are still willing to spend money on special occasions like the holidays or on “must-have items.” For example, he said, the retailer sold nearly 1 million copies of Taylor Swift’s hardcover book on “The Eras Tour.”

On Thursday, Target also announced several changes to its leadership team, which will take effect starting in early February. Chief store officer Mark Schindele will retire after 25 years at Target and will be replaced by Adrienne Costanzo, currently senior vice president of store operations.

Chief Information Officer Brett Craig will retire after 15 years at Target and will be replaced by Prat Vemana, the company’s chief digital and product officer. Sarah Travis will become the company’s chief digital and revenue officer, a new leadership role after serving as senior vice president of Target’s ad business and social commerce Roundel.

Target recently named a new chief financial officer: Jim Lee, a former deputy chief financial officer at PepsiCo, who took the job at the end of September. He succeeds Michael Fiddelke, who is now Target’s chief operating officer.

Changes in Target’s top leadership are also expected. In the fall of 2022, Target’s longtime CEO Brian Cornell agreed to stay on for another three years, a move that required the company’s board to eliminate the retirement age. Target has not announced when his contract will end or who will be his successor.