Despite Target beating expectations for the fourth quarter of 2022 amid a rise in consumer foot traffic and store visits CEO Brian Cornell delivered a cautious warning to investors.
“Looking ahead, we’re focused on executing our long-term strategy, including continued differentiation through affordability, assortment, ease and convenience. At the same time, we’re planning our business cautiously in the near term to ensure we remain agile and responsive to the current operating environment,” he said in the company’s earnings update.
Shares slipped in early trading.
For the quarter, the retail giant reported revenue of $31.40 billion versus $30.46 billion expected, adjusted earnings per share of $1.89 versus $1.48 expected, and a brick and mortar same-store sales increase of 1.9% versus -2.80% expected.
“We’re pleased that we entered the year in a very healthy inventory position, reflecting our conservative approach in discretionary categories and our commitment to reliability in our frequency businesses” Cornell added. “As we plan for the year ahead, we will continue to make robust capital investments and pursue efficiency opportunities in support of our long-term growth.”
Full-year sales increased 2.8% to $107.6 billion from $104.6 billion last year, reflecting a 2.2% increase in comparable sales combined with sales from non-mature stores.
Data compiled by Placer.ai shows foot traffic at Target increased 4% from January 2022 to January 2023, leading to a 0.7% same-store sales increase over the quarter while beating Wall Street’s estimates of -1.74%.
Full-year total revenue peaked at $109.1 billion, marking a 2.9% pop when compared with 2021 and reflecting sales growth of 2.8% and a 9.8% increase in other revenue.