Target's 4Q Beats Street Views, But Guidance Misses

By Colin Kellaher

Target Corp. on Tuesday posted fiscal fourth-quarter sales and earnings that topped Wall Street's expectations amid a slowing economy, but the retailer's profit guidance for the current year fell short of views.

The Minneapolis retailer reported net income of $876 million, or $1.89 a share, for the quarter ended Jan. 28, down from $1.54 billion, or $3.21 a share, a year earlier, but ahead of the $1.40 a share that analysts polled by FactSet, on average, were expecting.

Sales edged up 1.2% to $30.98 billion, topping the $30.67 billion Wall Street was looking for. Target also eked out a 0.7% gain in comparable sales; Wall Street had penciled in a drop of 1.6%.

Citing a "very challenging" retail environment, Target said it expects per-share earnings of $1.50 to $1.90 for its fiscal first quarter and $7.75 to $8.75 for the current fiscal year. Analysts polled by FactSet are looking for profits of $2.15 and $9.18, respectively.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

February 28, 2023 06:46 ET (11:46 GMT)

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