Target's Holiday Sales Surge 2.8%: Digital Growth And Black Friday Wins Drive Results

Target Corp TGT reported a 2.8% increase in holiday sales during the November and December period.

The company saw comparable sales rise 2% and solid sales during the Black Friday and Cyber Monday promotions.

The increase was fueled by a nearly 3% rise in traffic, positively impacting both in-store and online channels.

Particularly notable was the nearly 9% growth in digital sales year-over-year, driven by strong results in same-day delivery and Target’s third-party marketplace, Target Plus.

The company also experienced significant growth in discretionary categories like apparel and toys, while maintaining solid performance in beauty and frequency categories.

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“Our team delivered continued traffic growth and better-than-expected holiday-season performance, thanks to their focus on serving guests with an inspiring, easy, and joyous shopping experience,” said Chair and CEO Brian Cornell.

Target also announced certain leadership changes, including the retirement of Mark Schindele, its executive vice president and chief stores officer. The company announced Adrienne Costanzo, senior vice president, store operations, as its next chief stores officer.

Looking ahead, Target forecasts approximately 1.5% growth in fourth-quarter comparable sales versus its prior outlook of approximately flat comparable sales. The company continues to expect Adjusted earnings per share of $1.85 to $2.45, with an estimate of $2.15.

The retailer reiterated its FY24 adjusted EPS outlook of $8.30 to $8.90 versus the estimate of $8.60.

Price Action: TGT shares are trading lower by 1.26% at $132.84 in premarket at the last check Thursday.

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