Target reports comparable digital sales increase of 34% for Q4

On Feb. 28, Minneapolis-based Target Corp. reported earnings for fourth quarter 2016 and full-year 2016, noting that Q4 sales decreased 4.3 percent to $20.7 billion from $21.6 billion last year, reflecting a 1.5 percent decline in comparable sales combined with the removal of pharmacy and clinic sales from this year’s results. 

In contrast, comparable digital channel sales grew 34 percent in Q4 and contributed 1.8 percentage points of comparable sales growth, Target noted.

The company reported GAAP earnings per share from continuing operations of $1.46 in Q4 and $4.58 for full-year 2016, compared with $2.31 and $5.25 in 2015, respectively.

“Our fourth-quarter results reflect the impact of rapidly changing consumer behavior, which drove very strong digital growth but unexpected softness in our stores,” said Brian Cornell, chairman and CEO of Target, in a statement.

Cornell stated that to “position Target for long-term, sustainable growth in this new era in retail,” the company will accelerate its investments in “a smart network of physical and digital assets.” He also mentioned that the chain will launch more than 12 new brands, representing more than $10 billion of the company’s sales, over the next two years.

The earnings reported included the following highlights:

• Q4 comparable sales growth in “signature categories” outpaced total comparable sales by nearly three percentage points.
• Q4 comparable traffic increased 0.2 percent.
• Target returned $5 billion to shareholders in 2016 through dividends and share repurchases.

For first quarter 2017, Target expects a low- to mid-single-digit decline in comparable sales.

To read the complete report on Target’s website, visit https://corporate.target.com/press/releases/2017/02/target-reports-fourth-quarter-and-full-year-2016-e.