Target Corp. reported higher-than-expected earnings for the fourth quarter, on the back of strong same-store sales growth and a successful holiday season.
The retail giant’s earnings-per-share for the three months ending on February 2 increased +11.7% year-over-year to $1.53, beating analysts’ estimates by a penny (based on The Street consensus forecast). Group sales of $22.977 billion for the quarter was higher compared to analysts’ expected $22.91 billion. Growth in same-store sales came in at +5.3%, exceeding analysts’ estimates of +5%.
Earlier this year, Target had indicated that it experienced the best holiday sales since 2005. Same store sales for the two months ending in December increased +5.7%, which was a faster pace compared to 3.4% of the same period last year.
For the full year 2019, Target is forecasts earnings in the range of $5.75 to $6.05 per share, which is above the consensus estimate of $5.61 per share.