For the quarter ended January 2025, Target (TGT) reported revenue of $30.92 billion, down 3.2% over the same period last year. EPS came in at $2.41, compared to $2.98 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $30.77 billion, representing a surprise of +0.48%. The company delivered an EPS surprise of +7.11%, with the consensus EPS estimate being $2.25.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street exp ...

Core Viewpoint - Yum Brands Inc. anticipates that Taco Bell's first-quarter same-store sales growth will exceed the overall company growth as it aims to expand the fast-food chain's presence [1] Summary by Category - **Sales Growth Expectations** - Yum Brands expects an 8% same-store sales growth for Taco Bell in the first quarter, significantly higher than the 2.7% consensus estimate for the company's overall same-store sales growth [1]

Core Viewpoint - Target's CEO Brian Cornell has indicated that consumers can expect higher prices for imported produce from Mexico due to new tariffs, which will impact the company's first-quarter profits as spending declines [1][2][4]. Price Impact - The company relies significantly on Mexican produce, especially during winter months, and anticipates price increases on items like avocados and strawberries as soon as this week due to a 25% tariff [3][4]. - Cornell noted that while the company will attempt to protect pricing, consumers will likely see price increases shortly [4]. Financial Performance - Target reported a 1.5% rise in comparable sales for the holiday quarter, exceeding analyst expectations of 1.3%, although earnings per share fell 19.3% to $2.41, still surpassing Wall Street's forecast of $2.27 [7]. - For the full year through January 2026, Target projects flat comparable sales, below analysts' average expectation of 1.86% growth [9]. Consumer Behavior and Market Trends - There has been a 6.1% drop in foot traffic at Target stores from late January to late February, which some analysts attribute to the company's recent decision to end its diversity and inclusion initiatives [15]. - The retailer has noted shifts in consumer behavior affecting financial results, with non-essential categories like home furnishings and electronics already experiencing weakened demand [6]. Economic Outlook - Cornell expressed that the year ahead would be challenging for the retailer due to rising duties and economic uncertainty, which have already begun to affect sales [2][13]. - The company's annual forecast does not fully account for the impact of tariffs, and there is ongoing monitoring of trends to remain cautious in expectations for the year [13].

Target (TGT) came out with quarterly earnings of $2.41 per share, beating the Zacks Consensus Estimate of $2.25 per share. This compares to earnings of $2.98 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.11%. A quarter ago, it was expected that this retailer would post earnings of $2.29 per share when it actually produced earnings of $1.85, delivering a surprise of -19.21%.Over the last four quarters, the company has surpa ...

Core Viewpoint - Target Corp. is expected to see a rise in share prices after providing a full-year earnings outlook that aligns with market expectations, contrasting with recent trends of caution from other retailers [1] Financial Outlook - The company anticipates "meaningful" pressure on fiscal-first-quarter profits due to tariff uncertainties and the timing of certain costs, but expects improvements in results for the remainder of the year [1]

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Financial Performance - Full-year 2024 Net Sales decreased by 0.8% to $106.6 billion from $107.4 billion in 2023[11] - Fourth quarter Net Sales were $30.9 billion, a decline of 3.1% compared to the same quarter in 2023[10] - Fourth quarter GAAP and Adjusted EPS were $2.41, down 19.3% from $2.98 in 2023[5] - Full-year GAAP and Adjusted EPS were $8.86, a decrease of 0.9% from $8.94 in the prior year[5] - Target Corporation reported net earnings of $4,091 million for the twelve months ended February 1, 2025, a slight decrease from $4,138 million in the previous year[27] - Net earnings for Q4 2023 were $1,103 million, down 20.2% from $1,382 million in Q4 2024[34] - EBIT for Q4 2023 was $1,496 million, reflecting a 21.0% decline from $1,893 million in Q4 2024[34] - EBITDA for Q4 2023 was $2,262 million, a decrease of 13.7% compared to $2,622 million in Q4 2024[34] Sales and Growth - Digital comparable sales grew by 8.7% in the fourth quarter, with Same-Day delivery increasing over 25%[4] - Full-year comparable sales growth was 0.1%, with traffic increasing by 1.4% across stores and digital channels[4] - Comparable sales increased by 1.5% in the three months ended February 1, 2025, compared to a decline of 4.4% in the same period last year[30] - Digitally originated comparable sales rose by 8.7% in the three months ended February 1, 2025, while stores originated comparable sales decreased by 0.5%[30] Operating Income and Expenses - The company's operating income for the fourth quarter was $1.5 billion, a decrease of 21.3% from $1.9 billion in 2023[10] - Cash provided by operating activities was $7,367 million for the twelve months ended February 1, 2025, down from $8,621 million in the prior year[27] - Total depreciation and amortization for Q4 2023 was $766 million, an increase of 5.2% from $729 million in Q4 2024[34] - Net interest expense for Q4 2023 was $90 million, down 15.6% from $107 million in Q4 2024[34] Assets and Liabilities - Total assets increased to $57,769 million as of February 1, 2025, compared to $55,356 million as of February 3, 2024[25] - Total current liabilities increased to $20,799 million as of February 1, 2025, from $19,304 million as of February 3, 2024[25] - The current portion of long-term debt and other borrowings increased to $1,636 million from $1,116 million year-over-year[36] Efficiency and Cost Management - Target has achieved over $2 billion in cost savings through ongoing efficiency efforts over the last two years[4] - After-tax return on invested capital (ROIC) for the trailing twelve months ended February 1, 2025, was 15.4%, down from 16.1% for the prior year[36] - Invested capital as of February 1, 2025, was $29,779 million, up from $29,273 million in the previous year[36] Future Guidance - The company expects full-year 2025 GAAP and Adjusted EPS to be in the range of $8.80 to $9.80[9] - Full year 2025 GAAP diluted EPS guidance is projected to be between $8.80 and $9.80[33] Store Operations - The number of stores increased to 1,978 as of February 1, 2025, compared to 1,956 stores as of February 3, 2024[31] - Target Circle Card penetration decreased to 17.6% in the three months ended February 1, 2025, from 18.4% in the same period last year[31] - The company repurchased $1,007 million in stock during the twelve months ended February 1, 2025[27]

Core Insights - Target Corporation reported a decline in both fourth-quarter and full-year earnings per share (EPS) for fiscal 2024, with fourth-quarter GAAP and Adjusted EPS at $2.41 compared to $2.98 in 2023, and full-year EPS at $8.86 compared to $8.94 in the prior year [2][10] Financial Performance - Fourth-quarter net sales were $30.9 billion, a decrease of 3.1% compared to the same quarter in 2023, which had an additional week of sales [6][30] - Full-year net sales decreased by 0.8% to $106.6 billion from $107.4 billion, with comparable sales showing a slight increase of 0.1% [7][10] - The company's total comparable sales increased by 1.5% in the fourth quarter, driven by an 8.7% increase in digital sales, while comparable store sales declined by 0.5% [6][10] Operating Results - Operating income for the fourth quarter was $1.5 billion, down 21.3% from $1.9 billion in 2023, resulting in an operating income margin of 4.7% compared to 5.8% in the previous year [6][8] - Full-year operating income was $5.6 billion, a decline of 2.5% from $5.7 billion in 2023, with a full-year gross margin rate of 28.2%, up from 27.5% in the prior year [9][10] Sales Metrics - The company experienced strong performance in categories such as Beauty, Apparel, Entertainment, Sporting Goods, and Toys, contributing to better-than-expected sales and profitability [3] - Digital comparable sales growth of 8.7% in the fourth quarter indicates a shift towards online shopping, with same-day delivery services growing over 25% compared to the previous year [10] Guidance and Expectations - For fiscal 2025, the company anticipates profit pressure in the first quarter due to consumer uncertainty and a decline in February net sales, but expects a moderation in trends as weather improves [4][5] - The company projects full-year net sales growth around 1% and GAAP and Adjusted EPS guidance between $8.80 and $9.80 [11][38] Capital Deployment - Target paid dividends of $513 million in the fourth quarter, reflecting a 1.8% increase in the dividend per share compared to the previous year [15] - The company repurchased $506 million of its shares in the fourth quarter, with approximately $8.7 billion remaining under the repurchase program [16] Return on Invested Capital - The after-tax return on invested capital (ROIC) for the trailing twelve months was 15.4%, down from 16.1% in the previous year, primarily due to lower profitability [17][44]

Core Viewpoint - Target is expected to report a decline in earnings for the fiscal fourth quarter, despite raising its sales forecast, indicating reliance on discounts which may pressure margins [1][2][4] Sales Performance - Target raised its comparable sales guidance in January due to steady traffic during the holiday shopping season, but maintained its profit guidance, suggesting reliance on deals and discounts [2][4] - The retailer has struggled with discretionary merchandise sales amid inflation and competition, while Walmart has seen strength in this category [3][4] Financial Outlook - Target's earnings per share are projected at $2.26, with revenue expected to be $30.8 billion [9] - The company cut its profit guidance in November after a significant earnings miss, attributing some issues to costs related to a port strike, but primarily due to weaker discretionary sales [4] Product Strategy - Target has found success with new, trendy merchandise, such as workout gear and seasonal food items, which has driven customer spending [5][6] - The company is pursuing new partnerships with brands like Champion and Warby Parker to attract customers and enhance its product offerings [6][7] Future Initiatives - The partnership with Champion will introduce an exclusive line of sportswear, while Warby Parker will have shop-in-shops and online offerings, with a broader rollout planned for 2025 [7][8] - These initiatives aim to entice shoppers with fresh merchandise and compete more effectively against rivals, although the impact may take time to materialize [8]

ToplineAfter the People’s Union called for consumers to halt all online shopping on Feb. 28 in an “Economic Blackout,” Target lost that day in website visitors compared with mid-February Friday traffic, while Costco powered through with a 22% uptick, according to exclusive data from website analytics platform Similarweb.On Feb. 28 blackout day, Target website visitors dropped 9% compared to Friday, Feb. 14, from 5.2 ... [+] million to 4.7 million. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket ...