Skip to main content

Target is in a much better place than it was a year ago

The company's Q4 results made for pleasant reading.
  • Author:
  • Updated:

What's happening?

Target has released its 4th Quarter results early Tuesday morning, revealing among other things a rise in total revenue to $22.8 billion compared to $22.5 billion.

What was already a good Holiday season got even better in January, with comparable sales growing by 4 percent compared to a year ago, contributing to a 3.6 percent growth in overall sales.

In an otherwise good news update, Target's profits were slightly below what analysts predicted, at $1.37 per share compared to $1.38.

The main reason for this is it's now paying its workers more after raising hourly wages to $11 in 2017, committing to reach $15 by 2020.

This was enough to send Target's share price down 4 percent in premarket trading thanks to some very fickle investors.

Target seems buoyant

All of a sudden Target seems on much firmer footing.

A year ago, Target reported a 1.5 percent drop in same-store sales in Q4, but now it's surging ahead.

It's also making more sales online, with a 29 percent rise in digital sales meaning now accounts for 8.2 percent of the company's total revenue, CNBC notes, compared to 6.8 percent a year ago.

Over the next 12 months it's predicting growth in the low single digits, but 2018 is looking increasingly like a year in which Target positions itself for future growth.

It announced on Monday that it will be remodeling 325 stores in 2018 – of which 28 are in the Twin Cities – as part of a $7 billion reinvestment into the company through 2020.


– Target is spending $250M to upgrade 28 Twin Cities stores.

This will see more smaller-format stores opening, upgrades to existing locations, improvements to its app and the continued roll out of more private labels.

In its statement on Tuesday, Target CEO said 2018 would be a "year of accelerations in the areas that set Target apart – our stores, exclusive brands, and rapidly-growing suite of fulfillment options."

"While we have a lot left to accomplish, our progress in 2017 gives us confidence that we are making the right long-term investments to best position Target for profitable growth in a rapidly changing consumer and retail environment," he added.

Next Up


Hospital chiefs say nursing strike will come at 'worst possible time'

A nurses union announced an almost three-week strike to take place in the Twin Cities.


Sven Sundgaard: What's in store for MN's weather in December?

Sundgaard recaps Minnesota's fall and looks ahead to December.


Manure spill in Wisconsin leads to hours-long main street disruption

The spill was first reported just before 7:30 a.m. Tuesday morning.


Ice Cube to perform 2 nights at Mystic Lake Casino

The rapper hasn't performed in Minnesota since 2018.


Nicollet Mall's new Ties Lounge & Rooftop closes 'indefinitely'

The establishment aimed to reconnect the downtown community.

Screen Shot 2022-12-01 at 9.15.44 AM

Chinese restaurant closing after 50 years in Columbia Heights

The beloved family-owned restaurant will close Dec. 24.

Screen Shot 2022-12-01 at 9.43.40 AM

Kris Laudien leaving KARE 11 after four years on 'Sunrise'

KARE 11 announced the appointment of Jason Hackett to the morning show this week.


MN's COVID update for the week ending Tuesday, Nov. 29

There are now more than 570 people hospitalized with COVID-19 in Minnesota.


Twin Cities nurses to strike for 20 days starting Dec. 11

A strike in Duluth and Two Harbors doesn't have an end date set.



Target sales grew by $15B in 2020, more than past 11 years combined

The pandemic led to a historic year for the Minneapolis retailer.

Target is booming because customers are making more 'Target runs'

The company says store remodels are helping grow traffic.

The C9 Champion line will disappear from Target shelves

The clothing company announced it won't renew its Target partnership in 2020.

After Amazon, Target may be the biggest threat to struggling retailers

The Minneapolis retailer goes from strength-to-strength while others stagnate.

Holiday season a winner for Target, persuading more shoppers through its doors

The Minneapolis retail saw comparable sales grow 5.7 percent over the festive period.

target store

Target announces blowout 3rd quarter results

The retailer has seen business surge during the pandemic.

Target will slash prices after latest results reveal new struggles

After appearing to turn the corner after the doldrums of the data leak, Target is facing challenges again.