Target’s comparable sales declined as expected in 4Q as sticky inflation and other macro pressures continued to pinch discretionary spending, but the retail giant pumped up margins during the quarter and delivered higher earnings than expected. Gross margin was 25.6%, up from 22.7% in the year-ago quarter, due to lower markdowns, freight costs, supply chain costs and digital fulfillment costs, along with favorable shifts in category mix. Shrink costs were also lower than they were a year ago, with higher store loss rates being offset by the timing of inventory accruals. Per-share earnings of $2.98 cleared analyst forecasts for $2.42 according to FactSet.

Target (NYSE:TGT) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 03/05/2024 -1.78% Telsey Advisory Group → $160 Reiterates Outperform → Outperform 03/01/2024 -3.62% JP Morgan $125 → $157 Maintains Neutral 02/29/2024 -1.78% Telsey Advisory Group → $160 Reiterates Outperform → Outperform 02/26/2024 4.36% Oppenheimer $160 → $170 Maintains Outperform 02/21/2024 1.29% Wells Fargo $155 → $165 Maintains Overweight 02/16/2024 -6.08% Stifel $141 → $153 Maintains Hold 02/07/2024 4.36% Gordon Haskett → $170 Upgrades Hold → Buy 02/01/2024 — Goldman Sachs Maintains Buy 01/16/2024 1.29% Morgan Stanley $140 → $165 Upgrades Equal-Weight → Overweight 01/04/2024 -4.85% Wells Fargo $148 → $155 Maintains Overweight 11/16/2023 -14.06% Roth MKM → $140 Reiterates Neutral → Neutral 11/16/2023 -12.83% Citigroup $117 → $142 Maintains Neutral 11/16/2023 -13.44% Stifel $130 → $141 Maintains Hold 11/16/2023 -20.2% BMO Capital $120 → $130 Maintains Market Perform 11/16/2023 -3.62% RBC Capital

Target (TGT) on Tuesday recorded a 58% jump in fiscal fourth-quarter earnings that topped market estimates, as the retailer benefited from lower markdowns and shrink costs. The company’s adjusted earnings came in at $2.98 a share for the three-month period ended Feb. 3, up from $1.89 the year before, surpassing the Capital IQ-polled consensus of $2.41. Sales moved up to $31.47 billion from $30.98 billion, with total revenue rising 1.7% to $31.92 billion. The Street’s view was for $31.85 billion. Comparable sales fell 4.4%, compared with the 4.5% drop modeled by analysts, as the number of transactions decreased by 1.7%, according to the retailer. In the previous three-month period, same-store sales slipped 4.9% while traffic moved down 4.1%. “Our team’s efforts changed the momentum of our business, further improving our sales and traffic trends in the fourth quarter while driving profitability well ahead of expectations,” Chief Executive Brian Cornell said