Target Corporation (NYSE: TGT) announced on Tuesday its fourth-quarter and full-year 2018 results. The retailer delivered earnings and revenue that beat analyst expectations during the crucial holiday period.
For the fiscal fourth quarter Target reported earnings per share of USD 1.53 one cent ahead of what analysts expected. The Company brought in revenue of USD 22.98 Billion beating analysts expectations of USD 22.96 Billion. While Same-store sales grew to 5.3 percent topping expected growth of 5.1 percent.
“Our 2018 Adjusted EPS set a new all-time record for the Company," said Brian Cornell, chairman, and chief executive officer of Target.
For full-year 2018, Target reported its strongest same-store sales growth since 2005 at an increase of 5 percent. The Company’s e-commerce sales climbed 36 percent in 2018.
For the fifth year in a row Target’s digital sales surged more than 25 percent. In the same quarter a year prior, net income fell 26.5 percent from USD 1.1 Billion, or USD 1.99 a share, to USD 799 Million, or USD 1.52 a share. Revenue has stayed the same at USD 23 Billion.
For full-year 2019 Target is forecasting a “low-to-mid single-digit increase” in same-store sales, a “mid single-digit increase” in net income. They are expecting adjusted earnings between USD 5.75 and USD 6.05 per share, ahead of analysts estimates of USD 5.61 per share.
The stronger-than-expected earnings were fueled by investments in store remodels, efficient delivery methods and in-house brands. Target is expecting to launch new lingerie and sleepwear brands while also developing deals with recognized fashion brands including its most recent deal with Vineyard Vines.
In premarket trading on Tuesday Target rose 6 percent.
"We're very pleased with our fourth quarter performance, which capped off an outstanding year for Target. Thanks to the dedication of Target's team, we delivered our strongest traffic and comparable sales growth in well over a decade, and our 2018 Adjusted EPS set a new all-time record for the Company," said Brian Cornell.