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MINNEAPOLIS—Target Corporation announced its fourth-quarter and full-year 2024 financial results today. Despite a shorter fiscal year, the results reflect strong digital growth and solid performance in key categories. On a 52-week basis, Target estimates that full-year 2024 Net Sales increased approximately 1%, while earnings per share grew nearly 3% compared to 2023.
Fourth quarter highlights:
- Comparable sales increased 1.5%, driven by strong traffic and digital performance.
- Digital comparable sales grew 8.7%, with same-day delivery via Target Circle 360™ up 25% year-over-year.
- GAAP and Adjusted EPS of $2.41, near the high end of the company's guidance, supported by strong sales in Toys, Electronics, and Apparel.
Full-Year 2024 highlights:
- Comparable sales grew 0.1%, with gains in Beauty, Food & Beverage, Apparel, and Essentials.
- Traffic increased 1.4%, driven by growth in both stores and digital channels.
- Target's ongoing efficiency efforts delivered $2 billion in cost savings over the past two years.
Operational and financial metrics:
- Fourth-quarter operating income was $1.5 billion, down 21.3% from 2023. This was due to higher digital fulfillment and supply chain costs as well as increased promotional activity.
- Full-year Net Sales decreased 0.8% to $106.6 billion, with a 0.1% increase in comparable sales offset by the impact of one fewer week.
- The company returned $1.02 billion to shareholders in the fourth quarter through dividends and share repurchases.
“Our team grew traffic and delivered better-than-expected sales and profitability in our biggest quarter of the year,” said Brian Cornell, chair and chief executive officer of Target Corporation. “Results were led by strong performance in Beauty, Apparel, Entertainment, Sporting Goods, and Toys. As we look ahead, our continued investments in digital capabilities, stores and supply chain—combined with a focus on newness, value, speed and reliability—will further differentiate our one-of-a-kind physical and digital shopping experience. Consumers continue to be drawn to the everyday discovery and delight that only Target can deliver, and we're committed to leveraging our strategy, scale and unique position in retail to build on this distinct competitive advantage and drive long-term profitable growth.”
Target expects Net Sales growth of around 1%, a modest increase in operating margin, and GAAP and adjusted EPS between $8.80 and $9.80. However, the company anticipates profit pressures in Q1 due to seasonal factors and economic uncertainty.
The company anticipates year-over-year profit pressure in the first quarter due to ongoing consumer uncertainty, tariff impacts, and the timing of certain costs. However, it expects trends to moderate as seasonal demand picks up.
