U.S. discount retailer Target (TGT) has reported fourth-quarter 2024 financial results that narrowly beat Wall Street forecasts but warned of softer sales to start this year.
The Minneapolis-based company reported earnings per share (EPS) of $2.41 U.S., which was ahead of analysts’ consensus expectation of $2.26 U.S.
However, revenue of $30.90 billion U.S. was only slightly better than the $30.80 billion U.S. forecast on Wall Street. Target’s sales were down 3.1% from a year earlier.
Same-store sales rose 1.5% year-over-year during Q4 2024, which was in line with expectations.
Management said they saw increased sales of discretionary items such as toys, electronics, and apparel during the year-end holiday quarter.
However, management at Target also warned of soft sales in the current first quarter of 2025 and offered tepid forward guidance as a result.
The company said it expects its full-year 2025 sales to grow about 1%. That is well below the 2.5% sales growth that analysts had penciled in for Target.
Management added that they anticipate full-year earnings of $8.80 U.S. to $9.80 U.S. a share. The midpoint of that range, $9.30 U.S., is only slightly above forecasts of $9.29 U.S.
Target said that uncertainty around trade tariffs is impacting consumer confidence and its outlook.
The company has also struggled with sales of discretionary items coming out of the Covid-19 pandemic and has not been as successful as its rival Walmart (WMT) at adding essential items such as groceries to its store shelves.
The stock of Target has declined 20% over the last 12 months to currently trade at $120.76 U.S. per share.
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