Retail giant Target enjoyed stronger-than-expected comparable sales in November and December in Food & Beverage and its other core merchandise categories.
Comparable sales grew 3.4 percent during the period; they were forecast at just 0 to 2 percent. Minneapolis-based Target also announced it was raising its fourth-quarter and full-year 2017 EPS guidance, thanks not only to the strong sales figures but also to the new federal tax reform law.
For the fourth quarter, Target raised its guidance from $1.05-$1.25 to $1.30-$1.40. For the full year, guidance was increased from $4.40-$4.60 to $4.64-$4.74.
“We are very pleased with our holiday season performance, which reflects the progress we’ve made against our strategy throughout the year,” says Brian Cornell, Target’s chairman and CEO.
Target also reported strong online sales growth in the quarter. The company now expects 2017 to be the fourth consecutive year in which its digital sales grow by more than 25 percent.
“We’ve positioned our stores at the center of a continually expanding suite of convenient fulfillment options and made significant investments in our team, which enabled our stores to fulfill 70 percent of all digital orders in the November/December period,” Cornell says.