Target Corp. (TGT) Delivers Another Blockbuster Quarter

Target Corp. (NYSE:TGT) history dates back to 1902 when George Dayton established a departmental store named Goodfellow Dry Goods. A few years later, it was renamed Dayton Company. In 1962, the company launched a discounted version of its store called Target that became a leading revenue generator in a short span of time. Target’s annual revenue crossed $1 billion in 1979. Dayton once again changed its name to Target Corp in 2000 to reflect the success of the chain. Today, it is one of the biggest discount retailers in the U.S, operating 1,900 stores.

The company, being an essential retailer, kept its stores opened during the pandemic. This helped Target to substantially boost its sales over the last year, as non-essential retailers were not allowed to operate during the lockdown. Eventually, an increasing number of new customers turned to essential retailers like Target to buy goods.

Improved foot traffic and boom in the digital sales helped Target to beat expectations for the fourth quarter. The company on Tuesday reported earnings of $1.38 billion, or $2.73 per share for the three months ended January 30, significantly higher than $1.63 per share in the comparable period of 2019. Moreover, the adjusted profit of $2.67 per share easily surpassed the consensus forecast of $2.54 per share.

Revenue came in at $28.34 billion, up 21.1 percent from the year-ago quarter, and above analysts’ average estimate of $27.41 billion. Same-store sales rose 20.5 percent in the quarter, while analysts had projected a growth of 17.1 percent. Comparatively, digital same-store sales climbed 118 percent on a year-over-year basis.

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Speaking on the results, CEO Brian Cornell said in a statement, “Following years of investment to build a durable, scalable and sustainable business model, we saw record growth in 2020, as our guests turned to Target to safely provide for their families throughout the pandemic.”

Looking forward, Target plans to invest $4 billion annually at least for the next few years to open new stores, modify the existing ones, and enhance its supply chain.