Target Beats 2014 Forecast with Strong Sales Growth
MINNEAPOLIS, MN – Target Corporation posted its best sales growth in almost three years in its Q4 2014 financial report.
“We’re pleased with our fourth quarter financial results, which were driven by better-than-expected sales,” said Brian Cornell, Chairman and Chief Executive Officer of Target Corporation.
The company reported 2014 sales of $21.8 billion this quarter, a 4.1% increase over $20.9 billion last year. That total reflects a 3.8% increase in comparable sales combined with sales from new stores.
Other highlights from the report include:
- EBITDA and EBIT margin rates of 9.9% and 7.4%, respectively, compared with 9.2% and 6.8 percent in 2013.
- 2014 Adjusted EPS of $1.50 was above the company’s most recent guidance of $1.43 to $1.47 per share
- Full-year 2014 comparable sales grew 1.3%
- Digital channel sales growth of more than 30% contributed 0.7 percentage points to 2014 comparable sales growth
“We’re seeing early momentum in our efforts to transform Target, and our team is entering the new fiscal year with a singular focus on continuing to differentiate our merchandise assortment and shopping experience while controlling costs by reducing complexity and simplifying the way we work,” Cornell added.
These better than expected results come after Target laid out a 3 step turnaround plan and announced the both closure of all of its Canadian stores and the expansion of the Target Express format in the United States.
Cornell added, “We’re confident that these efforts will allow us to grow our earnings while returning cash to our shareholders in 2015 and beyond, driving improvements in Target’s return on invested capital and creating long-term value for our shareholders.”
With the renewed push on smaller format stores, coupled with Target’s exit from Canada, 2015 could prove to be a pivotal year for this retailer.
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