Target earnings beat expectations as stock futures crater

Core Viewpoint - Target's fourth-quarter results were better than expected amidst a challenging market environment, with a notable increase in safe haven investments like gold [1] Group 1: Financial Performance - For the quarter ended January 31, Target reported net sales of $30.5 billion, a decrease of 1.5% year-over-year, with comparable sales down 2.5% [2] - Adjusted earnings per share (EPS) were $2.44, slightly above last year's $2.41, while full-year adjusted EPS fell to $7.57 from $8.86 in 2024 [4] Group 2: Sales Composition - Despite a 3% drop in store traffic, customers who visited spent slightly more, with growth in net sales for Food & Beverage, Beauty, and Toys, and a significant increase in same-day delivery by over 30% [3] - Target's membership revenue more than doubled, indicating a positive trend in customer engagement [3] Group 3: Future Guidance - The new CEO, Michael Fiddelke, mentioned a "healthy, positive sales increase in February," suggesting potential recovery after a year of decline [5] - For 2026, Target is guiding for approximately 2% net sales growth and earnings that straddle 2025's figures, with the high end of the range exceeding last year's numbers [6]