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:
    Original:

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 Target.com 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.

Related:

– 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

Kwesi Adofo-Mensah

Here’s what the Vikings owners say about new GM Kwesi Adofo-Mensah

The Vikings announced his hiring on Wednesday night.

raiaing canes brooklyn park crop

After 3-month delay, newest Twin Cities Raising Cane's opens

The restaurant was originally scheduled to open in October.

st anthony armed robbery screengrab

Armed man robs Twin Cities thrift store, flees in carjacked pickup

He pulled out a handgun shortly after chatting with the cashier about his scarf.

red wing 6

Gallery: Pagoda-inspired home on Lake Pepin for sale for $2M

The home has 425 feet of private shoreline on the Mississippi River.

Walz, Flanagan

Walz proposes legalizing marijuana in massive supplemental budget

It's among the provisions in his "Budget to Move Minnesota Forward."

Plow 2 (1)

Photos reveal damage from gunshots to Minneapolis snowplow

A hydraulic line and three tires were damaged in the shooting.

unsplash - school classroom students

Minneapolis schools confirm return to in-person teaching Monday

The school district shifted to online learning almost two weeks ago as rising COVID cases led to staff and bus driver shortages.

Flickr - Superior National Forest Boundary Waters

Mineral leases for proposed Twin Metals mine near Boundary Waters canceled

A review by the DOI found "significant legal deficiencies" with the leases' 2019 renewal.

cats

Reward to find person who left kittens to die in freezing WI cold

The cats were thrown from a vehicle, according to a witness.

metro mobility bus

Charges: Man led police on multi-city pursuit in stolen Metro Mobility bus

The bus had been left unattended with the keys inside when it was stolen.

Bell Ramsey Co. Jan 22 - crop

Charges: Man fatally shot mother of his child during argument

Officers found her on the ground outside the couple's home.

covid

Minnesota's COVID-19 update for Wednesday, January 26

More than 15,000 new cases in today's update.

Related

target

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.