Target results exceeded expectations, boosted by online sales

Target (TGT) announced Tuesday a quarterly profit higher than Wall Street estimates, stimulated by the increase in digital sales.

Here are Targets' key figures for the fourth fiscal quarter, compared to Bloomberg estimates:

• Returned: 23.40 billion dollars against 23.44 billion dollars expected

• Adjusted EPS: $ 1.69 versus expected $ 1.66

• Comparable store sales: + 1.5% vs + 1.5% expected

However, the midpoint of Targets 'forecasts missed analysts' estimates, which helped push the stock down by more than 1% in an unstable pre-trade action.

Like many of its retail competitors, Target is benefiting from a spate of internet shopping. Digital sales in the fourth quarter increased 20%, accounting for 12.3% of total sales, and 2019 was the sixth consecutive year in which comparable digital sales targets jumped more than 25%, according to the company. .

Targets' same-day services in 2019 increased by more than 90% and represented more than three-quarters of retailers in terms of digital sales growth.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Target CEO Brian Cornell said in a statement that Target's results demonstrate that we have built a sustainable business model that stimulates strong overall growth and consistent results performance. "data-reactid =" 25 "> Brian Cornell, CEO of Target said in a statement that Target's results demonstrate that we have built a sustainable business model that stimulates strong overall growth and consistent results performance.

Target said it expects adjusted first-quarter earnings per share between $ 1.55 and $ 1.75 and full-year adjusted earnings per share between $ 6.70 and $ 7.00.

The big box retailer announced Monday that it would cancel analysts and investors in-person day in Manhattan on Tuesday, the latest company to cancel a major event due to coronavirus problems.

Given the rapidly evolving situation regarding the coronavirus, Target's management team decided to cancel the face-to-face aspect of Tuesday's financial community meeting. Instead, we will be hosting the meeting remotely from Minneapolis, wrote a company representative in an email to Yahoo Finance.

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Targets Results for the fourth fiscal quarter come after retailers announced weaker-than-expected sales in mid-January. Comparable store sales by retailers in November and December rose a mere 1.4% compared to 5.7% a year ago.

Despite Targets' recent problems, the company crushed its competition in 2019. In its third quarter, Target posted higher and lower pace and same-store sales growth that crushed Wall Streets expectations. The company also released solid indications that took the title to unprecedented heights during the announcement.

However, the actions of the big box retailer struggled in 2020. The target stock fell 14% at the close on Monday, while the general market was down 4% and the retail ETF , XRT, fell 11% in the same period. Target shares, traded on the New York Stock Exchange, closed up more than 5% on Monday at $ 109.66.

The results conference call begins at 9:00 a.m. EST.

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