Target which is one of the largest retailers in the US, which has also become one of the top 10 e-commerce retailers, has just reported its fourth-quarter numbers. The company’s figures show that they have beat the earnings expectations but they have not managed to beat their revenue expectations. Target says that the revenue fell short because of low demand for toys, electronics and home goods during the holiday season.
However, Target says that its growth in the same-day delivery sector has been great and it adds that the online order delivery contributed to 80% of its digital sales growth in the fourth quarter. The company also reveals that its earnings per share will revolve around the $6.70 to $7 mark whereas the market predicts it to be $6.87 per share.
The key highlights of Target’s fourth-quarter report are as follows:
- Earnings per share, adjusted: $1.69 vs. $1.65 expected
- Revenue: $23.40 billion vs. $23.50 billion expected
- Same-store sales growth: 1.5% vs. 1.5% expected
It is to be noted that while the earnings per share were expected to be $1.65, it was actually $1.69 but the revenue fell short of the $23.50 billion expected to slightly below that at $23.40 billion.
Apart from investing in its stores and expanding its e-commerce business at a time when brick-and-mortar stores are closing down, Target has also launched apparel brands and recently added a new activewear line, All in Motion, and new luggage line, Open Story.
Target’s CEO revealed that “The strategic investments we’ve made over the past several years to elevate the shopping experience, curate our multi-category assortment at scale, and deliver ease and convenience through our fulfilment capabilities are deepening our relationship with our guest,”
On the topic of coronavirus, Target’s CEO reveals that the retailer has seen “aggressive shopping” as people across the U.S. respond to rising coronavirus cases but maintains that impact on them has not been felt yet.