almost 4 years ago • 1 min
Things aren’t cool for retailers at the moment, but it was straight-shootin’ for Target, which reported strong fourth-quarter results on Tuesday 💥 Pew pew.
Target warned investors back in January that weak holiday sales growth would mess with the company’s growth last quarter, and the retailer lowered its (ahem) targets accordingly.
That made it easier for the company to deliver revenue roughly in line with – and profit slightly ahead of – its most recent promise. Its earnings forecast for this year, meanwhile, was slap-bang in line with investors’ expectations 🙌
But it still has work to do to meet those forecasts: competition in the US retail industry has led to some high-profile casualties of late. Target might be hoping its private-label brands and refreshed in-store experiences will keep shoppers from heading elsewhere.
US shoppers have reportedly been stockpiling food and medical supplies in preparation for the potential national spread of coronavirus 🥫 That’s likely benefited rival retailer Costco, whose shares got a boost this week as investors anticipate a revenue windfall.
And Target might see something similar: the company’s ticking all the right boxes at the moment, with a growing ecommerce business – including same-day delivery – that appeals to shoppers who are staying safe in their own homes.
Target canceled its in-person investor update that was scheduled for Tuesday, and instead hosted an online analyst call. But that didn’t stop its shares initially rising 2%: an absence of bad news, after all, is almost as encouraging as good news these days 😬
It’s always nice when there is good news, mind you, and Kohl’s duly obliged: the department store chain reported better-than-expected earnings on Tuesday, and its stock rose 4%.
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