Customer traffic increased 3.2%, and online sales grew 29%
Target posted a profit of $1.1 billion in the quarter compared to $817 million in the year-ago period. Revenue rose 10% to $22.7 billion. Customer traffic increased 3.2%, and online sales grew 29%.
The company said it saw healthy sales growth in all five of its merchandising areas in the year’s final quarter. Fourth quarter results were also boosted by the recently enacted corporate tax break.
“Our fourth quarter results demonstrate the power of the significant investments we’ve made in our team and our business throughout 2017,” chairman and chief executive officer Brian Cornell said in a statement.
The company said customers were responding to its growth-oriented initiatives, including price cuts, store remodels and new private label brands in home goods and apparel.
In addition, Target is opening smaller locations, and it recently acquired Shipt, a grocery delivery service, to permit same-day delivery from many of its stores.
Target said it expects to see comparable-store sales growth in the low single digits this year. It expects earnings per share in the current quarter to range from $1.25 to $1.45. For the full year, Target expects earnings in the range of $5.15 to $5.45 per share.