Target Corporation (NYSE: TGT), the nation’s second-largest discount retailer, announced its fourth-quarter and full-year 2018 results. Fourth quarter revenues were $22.9 billion and net income of $799 million. Total revenues for fiscal 2018 were $75.3 billion and net income of $2.93 billion.
Target reported comparable sales grew 5.3 percent in the fourth quarter. Stores comparable sales grew 2.9 percent in the fourth quarter, while comparable digital sales grew 31 percent, contributing 2.4 percentage points to comparable sales growth. Total revenue of $23.0 billion was essentially flat to last year. Operating income was $1,117 million in fourth quarter 2018, compared with $1,129 million in 2017. The year-over-year comparisons for both total revenue and operating income reflect the impact of an additional fiscal week in fourth quarter 2017.
“We’re very pleased with our fourth quarter performance, which capped off an outstanding year for Target. Thanks to the dedication of Target’s team, we delivered our strongest traffic and comparable sales growth in well over a decade, and our 2018 Adjusted EPS set a new all-time record for the Company,” said Brian Cornell, chairman and chief executive officer of Target Corporation. “We have been driving an ambitious agenda to transform our Company, evolve with our guests and drive strong growth. On every count we’ve been successful, and as we enter 2019, we will continue to lead the industry by adapting, innovating and delivering more for our guests and shareholders.”
Highlights from Target’s earnings report:
- Fourth quarter comparable sales grew 5.3 percent on traffic growth of 4.5 percent.
- In the fourth quarter, comparable store sales grew 2.9 percent, and comparable digital sales grew 31 percent.
- Stores fulfilled nearly three quarters of Target’s fourth-quarter digital sales.
- For both the fourth quarter and full year, the Company saw healthy comparable sales growth and market-share gains across all five of its core merchandise categories.
- Full-year comparable sales grew 5.0 percent — Target’s strongest performance since 2005.
- In 2018, comparable store sales grew 3.2 percent, and comparable digital sales grew 36 percent.
- 2018 marks the fifth consecutive year in which Target’s comparable digital sales have grown more than 25 percent.