The retailer ended 2024 with a good holiday season, but warned of uncertainty ahead.
Target had a tough 2024: Its stock price declined, it struggled to deliver consistent sales growth, and it faced lawsuits related to its diversity, equity and inclusion practices and then calls for boycotts when it abandoned them.
On Tuesday, the retailer tried to offer Wall Street some optimism for the year ahead — predicting flat comparable sales and a “modest” increase in its operating margin rate. But even that muted outlook came with warnings about slightly lower sales in February and uncertainty over tariffs and consumer confidence.
The company reported a solid holiday season, with fourth-quarter sales increasing 1.5 percent from a year earlier, bolstered by apparel, toys, beauty products and sporting goods. E-commerce sales jumped 8.7 percent in the quarter, which ended Feb. 1, and combined in-store and online traffic was up 2.1 percent.
“Our team grew traffic and delivered better-than-expected sales and profitability in our biggest quarter of the year,” Brian Cornell, chief executive of Target, said in a statement.
Full-year comparable sales rose 0.1 percent, Target said. Walmart, by contrast, reported a 4.4 percent increase for the year.
While the results were subdued, the rise in sales was welcome news for Target, which has sought to win back customers who pulled back on discretionary purchases because of inflation.