Target: beats consensus, but cautious outlook for 2025
(CercleFinance.com) - On Tuesday, Target reported a better-than-expected profit for Q4, although forecasts were cautious, due to the expected impact of the Trump administration's tariff surcharges.
The US retailer's sales for Q4, to the beginning of February reached $30.9bn, down 3.1% y-o-y, which included an extra week of activity.
Sales rose by 1.5% LFL over the quarter, with a 0.5% decline in store sales more than offset by an 8.7% jump in online sales.
Operating income contracted by 21.3% to $1.5bn, but EPS came in at $2.41, above the consensus forecast of $2.06.
Target nevertheless said that it expected its Q1 profitability to be pressurised by weaker consumer sentiment, a further decline in sales and the possible impact of new tariffs against Mexico, Canada and China, which came into force yesterday.
For its new financial year, the Minneapolis (Minnesota)-based group forecasts sales growth of around 1%, which corresponds to a broadly stable trend like-for-like.
Meanwhile, adjusted EPS is expected between $8.80 to $9.80.
The share was down over 3% in pre-market trading on Tuesday morning in the wake of this publication.
Copyright (c) 2025 CercleFinance.com. All rights reserved.
The US retailer's sales for Q4, to the beginning of February reached $30.9bn, down 3.1% y-o-y, which included an extra week of activity.
Sales rose by 1.5% LFL over the quarter, with a 0.5% decline in store sales more than offset by an 8.7% jump in online sales.
Operating income contracted by 21.3% to $1.5bn, but EPS came in at $2.41, above the consensus forecast of $2.06.
Target nevertheless said that it expected its Q1 profitability to be pressurised by weaker consumer sentiment, a further decline in sales and the possible impact of new tariffs against Mexico, Canada and China, which came into force yesterday.
For its new financial year, the Minneapolis (Minnesota)-based group forecasts sales growth of around 1%, which corresponds to a broadly stable trend like-for-like.
Meanwhile, adjusted EPS is expected between $8.80 to $9.80.
The share was down over 3% in pre-market trading on Tuesday morning in the wake of this publication.
Copyright (c) 2025 CercleFinance.com. All rights reserved.