Target reports 2018 holiday same store sales growth of 5.7 percent

Target saw an increase in buyers to their stores and websites over the past holiday season, a sign that investment in store buildings and delivery services are paying off and an early sign that consumers across the US spent more on gifts this year [19659002] div> div.group> p: first-child "/>

The dealer said in a Thursday press release sales at their stores and website operating for at least 12 months climbed 5.7 percent during the last holiday season. A growth of 3.4 percent a year ago, surpassing some analysts' expectations, Target said it maintained its fourth-quarter and fiscal outlook 2018. It also announced the retirement of CFO Cathy Smith, as well as a handful of other management changes. 1[ads1]9659003] Overall, CEO Brian Cornell says he is "very pleased" with Target's performance in November and December, both in stores and online. The company said it was able to attract more people. under which also spent weak shelter more per visit. Some of their strongest sales were in the baby and toy categories.

"In 2019, we expect to build on this moment … and deliver profitable growth throughout the year," Cornell said in a statement.

Target's digital sales were up 29 percent during the holidays, thanks to the retailer offering several delivery options such as buying online store pickup. It said that the amount of online orders that were met either by picking up in the shopping cart or on a basket side was up 60 percent from a year ago, accounting for about 25 percent of online sales during November and December. Target said it is still on track to report digital sales growth of more than 25 percent in 2018, which would make it the fifth consecutive year it has been able to do so.

Target expects continued sales in the same store at around 5 percent in the fourth quarter and adjusted earnings per share for financial 2018 between $ 5.30 and $ 5.50. Analysts covering the company have requested a fourth quarter of the same store growth of 5.1 percent, and a full-year revenue of $ 5.39 per share, according to a survey by Refinitiv.

Should Target meet its expectations of the same store sales for the fourth quarter, the company said it will make 2018 its strongest year of sales growth since 2005.

In November, Cornell's analysts reported that there was "no sign" consumer spending was on holiday. It was after he said that the US consumer environment was in the best shape he had seen in his career and helped fuel Target grow.

The Goal's Latest Investments – such as rebuilding major stores, opening out-of-town stores in some cities and adding more brands internally – "it helps to compete with Walmart price levels, merchandising warehouses, and Amazon for delivery , "Telsey Advisory Group analyst Joseph Feldman said in a note to customers before Thursday's press release.

Feldman expected that Target's same store sales would increase by 5 percent during the holidays. Like many dealers, he said Target should have benefited from a longer trading season – several days in between Thanksgiving and Christmas – and the decline of dealers like Toys R Us and Sears. Apart from JC Penney, who earlier this week reported a decline in holiday same-store sales, Target is one of the first major US dealers to offer analysts and investors a better look at performance over the past few weeks.

In addition To Smith's resignation as CFO, expected to happen when a successor is named, Target said his HR manager, Stephanie Lundquist, will take a new role as president of food and drink. She will report directly to Cornell. Melissa Kremer takes over Lundquist's HR role.