The goal was to see more than 500% growth in roadside pickup in the fourth quarter.
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rise on Tuesday after the big box retailer reported a sizable fourth quarter of the fiscal year.
Target (ticker: TGT) said it made $ 1.38 billion, or $ 2.73 per share, for the quarter, down from $ 1.63 per share for the same period last year. Excluding one-off items, including riot shop damage and insurance, it earned $ 2.67 per share. Revenue grew 21.1% to $ 28.3 billion. Analysts were looking for earnings per share of $ 2.54 on revenue of $ 27.41 billion.
Like-for-like sales rose 20.5% ahead of analysts’ forecast 17.1% growth, driven by a 118% increase in digital sales. Same-day services, which include In-Store Order & Roadside Collection and Shipt, rose 212%, led by roadside collection growth of more than 500%. Pedestrian traffic rose by 6.5% and customer order totals by 13.1%.
The company declined to provide a full-year forecast for fiscal 2021, citing the ongoing Covid-19 pandemic.
The target stock is up about 2% to $ 189.60. Stocks are up nearly 76% in the past 12 months and are up more than 5% since the start of the year.
As a major retailer, Target benefited from staying open in the early days of the pandemic and only built on that benefit: The company estimates it had sales of around $ 9 in a period when the largest retailers have been engulfing the market Share has made billions of dollars from competitors.
Additionally, Target’s customers are more than willing to do the legwork for their orders, as evidenced by the continued popularity of in-store and roadside pickup. This saves Target the effort and costs of shipping articles. A blessing as delivery is particularly costly over the last mile. According to Target, more than 95% of sales in the fourth quarter came from the stores.
Target’s stocks are responding much better to the report than the competition
(WMT), which fell 6.5% after the fourth quarter results were released last week. This decrease was partly due to concerns about higher labor costs, a pressure Target doesn’t face because it pays employees at least $ 15 an hour.
Even so, the target stock didn’t hit the same pop it did after delivering another quarter of Banner in November. Investors may have been hoping for some insight into the year ahead as Target – like other pandemic winners – faces tough comparisons with big returns for 2020.
Write to Teresa Rivas at email@example.com