Target is scheduled to report fourth-quarter earnings before the bell on Tuesday.
Here’s what analysts are expecting, according to a Thomson Reuters survey:
* Earnings per share: $1.38
* Revenue: $22.5 billion
* Same-store sales: an increase of 3.1 percent
The Minneapolis-based retailer has spent a lot of time in the shadows of Walmart and Amazon, as it forges ahead with a plan to reinvest more than $7 billion back into the company through 2020. The money is being spent on opening smaller-format stores, refurbishing existing locations, rolling out more private-label brands and redesigning Target’s mobile app, Cartwheel.
Late last year, Target acquired delivery service Shipt for $550 million, showing it was serious about bolstering its supply chain and finding ways to get online orders to shoppers as quickly as possible. The news followed Target’s acquisition of transportation company Grand Junction in August.
One area of concern for investors has been Target’s lackluster grocery offering when compared with peers in the space. While the company has been pouring money into other areas of the store, it’s done little to keep pace with Amazon-owned Whole Foods, Kroger and the like. Most of its new private-label brands have been in the apparel and home categories.
Target shares have climbed more than 15 percent so far this year.
This is a developing story. Please check back for updates.
