Target (NYSE: TGT) is reported to have seen a surge of shoppers head to its stores and website this past holiday season, a sign that its investments in store remodels and delivery services are paying off, and an early sign that consumers across the U.S. spent more on gifts this year.
The retailer said in a Thursday press release that sales at its stores and website operating for at least 12 months climbed 5.7% this past holiday season. That’s compared with growth of 3.4% a year ago and surpassing some analysts’ expectations.
Based on Thursday’s results, Target said it’s maintaining its profit outlook for the fourth quarter and fiscal 2018. The retailer also announced the retirement of CFO Cathy Smith, in addition to a handful of other management changes.
CEO Brian Cornell said, "We are very pleased with Target's holiday season performance, which came on top of really strong results in the same period last year. This performance demonstrates the benefit of placing our stores at the center of every way we serve our guests, including both in-store shopping and digital fulfillment.
"Given our fourth-quarter outlook, we are on track to deliver Target's strongest full-year comparable sales growth since 2005, market-share gains across all of our core merchandising categories, and double digit growth in Adjusted EPS. In 2019, we expect to build on this momentum as we gain further scale in our fulfillment capabilities and deliver profitable growth throughout the year."
Target continues to expect fourth quarter 2018 comparable sales growth of approximately 5%. For the full year, the Company continues to expect Adjusted EPS of $5.30 to $5.50 and GAAP EPS of $5.41 to $5.61.
Shares in Target faded $2.42, or 3.4%, to $67.87
