Target Corporation
Key Metrics
The company reported fourth-quarter adjusted earnings per share of $2.44, beating the analyst consensus estimate of $2.15. Quarterly sales of $30.453 billion (down 1.5% year over year) missed the Street view of $30.512 billion.
Fourth-quarter comparable sales decreased 2.5%, reflecting a comparable-store sales decline of 3.9% and a comparable-digital sales increase of 1.9%.
In the quarter under review, apparel & accessories sales totaled $4.100 billion, lower than $4.344 billion a year ago. Beauty sales increased to $3.484 billion from $3.444 billion a year ago. Sales in the food & beverage unit totaled $6.638 billion, compared with $6.520 billion.
Advertising revenue was $295 million, compared with $190 million.
Quarterly adjusted operating income was $1.5 billion, slightly above last year. Adjusted operating income margin rate was 4.8% in the fourth quarter, compared with 4.7% a year ago.
Gross margin rate was 26.6%, compared with 26.2% a year ago, reflecting lower inventory shrink, lower supply chain and digital fulfillment costs, and growth in advertising and other revenues.
Target exited the quarter with cash and equivalents worth $5.488 billion.
Outlook
The firm is looking for 2026 adjusted EPS of $7.50-$8.50, versus an analyst estimate of $7.68. It projects sales of $106.876 billion, versus the analyst estimate of $106.672 billion.
Target sees fiscal 2026 GAAP EPS of $7.50 to $8.50 versus the $7.76 estimate.
For the first quarter, the company's adjusted earnings per share is expected to be more than $1.30 versus $1.50 estimate, while GAAP earnings per share is expected to be more than $1.30 versus $1.53 estimate.
TGT Price Action: Target shares were up 3.47% at $117.10 during premarket trading on Tuesday, according to Benzinga Pro data.
