Target Corporation (NYSE: TGT) announced on Thursday that its comparable sales for the holiday period grew 5.7 percent while maintaining there 2018 outlook.
The Minneapolis-based Corporation saw comparable sales grow 5.7 percent through November and December. Last year over the same period Target saw an increase of 3.4 percent. Over the last two years, Target’s comparable sales have grown more than 9 percent. Growth was driven primarily by strong traffic, positive store comps and comparable digital sales growth of 29 percent.
Despite the strong performance, shares from Target were down 4 percent right behind retailers Macy’s and Kohl’s who reported disappointing holiday sales.
Digital sales grew to 29 percent primarily due to more delivery options. Online orders like in-store pickup and curbside pickup services were up 60 percent from a year ago. 25 percent of online sales came from there online orders during November and December. Over the past five years, Target has been able to deliver digital sales growth of more than 25 percent, and for 2018 the Company expects the same.
Target five core merchandise categories saw comparable sales growth in the holiday period. The strongest performers being Toys, Baby and Seasonal Gift items.
Given the strong performance during the holidays, Target maintains there expectations for there fourth quarter outlook. For the fourth quarter of 2018, The Company expects sales growth of approximately 5 percent. Brian Cornell, Chairman and Chief Executive Officer of Target Corporation, said in a press release, “Given our fourth quarter outlook, we are on track to deliver Target’s strongest full-year comparable sales growth since 2005, market-share gains across all of our core merchandising categories, and double-digit growth in Adjusted EPS.”
For the full year, Target expects earnings per share of USD 5.30 to USD 5.50.
Brian Cornell stated, “We are very pleased with Target’s holiday season performance, which came on top of really strong results in the same period last year. This performance demonstrates the benefit of placing our stores at the center of every way we serve our guests, including both in-store shopping and digital fulfillment