Retail news that keeps industry pros in the know
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Target’s holiday shopping season revenue increased 1.7% year over year to $31.9 billion, exceeding Wall Street’s expectations. But the impact of rising prices on consumers showed in the company’s sales figures.
- Total comparable sales fell 4.4% in Q4; comparable store and comparable digital sales dropped 5.4% and 0.7%, respectively.
- For 2024, Target predicts its full year sales will be flat or increase up to 2%.
“Our team’s efforts changed the momentum of our business, further improving our sales and traffic trends in the fourth quarter while driving profitability well ahead of expectations,” CEO Brian Cornell said in a statement.
Number go up: Investors appear confident in Target’s vision; the company saw a more than 10% bump in its share price Tuesday afternoon. That’s because the company’s profits are showing signs of recovery. Target’s Q4 operating income of $1.9 billion was a staggering 60.9% increase from 2022.
- Its full-year operating income of $5.7 billion climbed 48.3% from $3.8 billion in 2022.
- Additionally, Target announced a new membership program, which we’ll have more on later.
“Looking ahead, we’ll continue to invest in the strengths and differentiators that have delivered strong financial performance over time,” Cornell said. “We’ll also roll out fresh innovations, including our new Target Circle membership program, as part of our roadmap for growth aimed at meeting consumers where they are, reigniting sales, traffic and market share gains, and positioning Target for profitable growth in 2024 and beyond.”