News

Target has a rosier outlook on 2018 thanks to holiday sales

January 9, 2018

A robust holiday sales season has Target revamping its expectations for the fourth quarter, raising its fourth quarter and full-year 2017 EPS guidance.

The reasons for the higher expectations are stronger than expected sales in late 2017 and the recently-enacted federal tax plan, according to a press release. Target now expects fourth quarter comparable sales growth to be close to 3.4 percent and a 1 percent-plus sales growth for the full-year 2017. Target also stated it expects 2017 to be the fourth consecutive years in which its digital sales grew more than 25 percent.

"We are very pleased with our holiday season performance, which reflects the progress we've made against our strategy throughout the year," said Brian Cornell, chairman and CEO of Target Corporation, in the release.

"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. As we look ahead to 2018, we will build on the foundation we established this year by launching additional exclusive brands, enhancing our digital capabilities, opening approximately 30 small-format stores and tripling the size of our remodel program to more than 325 stores. We will also remain focused on rapidly scaling up new fulfillment options including same-day delivery, which will be enabled by our acquisition of Shipt, and our recently launched drive up service."