Target Corporation (NYSE:TGT) revealed impressive earnings for the holiday quarter, surpassing Wall Street estimates amidst a smaller-than-expected sales decline.
The retail giant reported adjusted earnings of $2.98 per share, soaring above the $2.42 per share forecasted by analysts.
The total comparable sales for the November to January period fell by 4.4%, less than the anticipated 4.6% decline.
This was attributed in part to a rebound in online sales, which experienced a 0.7% decrease compared to the previous quarter's 6% decline.
The company credited robust Black Friday and Cyber Monday spending, as well as the popularity of newly launched collections such as Kendra Scott jewellery and the private-label Figmint line of kitchenware, for driving holiday-quarter sales.
Additionally, Target's strategic focus on same-day services like Drive-up contributed significantly, accounting for more than 10% of total sales in the quarter.
Meanwhile, Target unveiled its earnings outlook for 2024, expecting adjusted earnings between $8.60 to $9.60 per share.
Additionally, comparable sales are projected to range from flat to up 2% for the year, surpassing the average analyst expectation of a 0.86% rise.