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Over the past year, Target and Walmart Inc consistently
performed better than Wall Street expected as the deep-pocketed
national retail chains amped up their online businesses during
the health crisis and swiped market share from smaller rivals
who rely more on their physical stores.
Still, Target held back on providing sales and earnings forecast
for fiscal 2021, citing continued uncertainty over consumer
shopping patterns amid the health crisis.
The retailer's shares, which have gained over 80% in the year,
were trading largely flat before the bell.
The company's comparable sales rose 20.5% in the fourth quarter
ended Jan. 30, comfortably beating analysts' estimates for a
16.4% rise, according to IBES data from Refinitiv.
Sales through its same-day deliveries and store pick-up services
surged 212%, as consumers sought quicker ways to get their
online purchases and government stimulus helped carry holiday
spending momentum into January.
Analysts have, however, warned that the torrid pace of growth
would be difficult to repeat in the coming months, as COVID-19
vaccine rollouts raise the promise of a return to something
closer to pre-pandemic life.
Target's comparable sales for the full year are expected to slip
3.6%, according to Wall Street brokerages. In February, Walmart
said it expects sales growth to slow this year, leading to a
fall in its shares.
Total fourth-quarter revenue for Target rose 21.1% to $28.34
billion, beating average estimates of $27.48 billion. Full-year
sales rose by over $15 billion, larger than the combined growth
of the last 11 years.
Net earnings surged 65.6% to $1.38 billion. On an adjusted
basis, the company earned $2.67 per share, beating estimates of
$2.54.
(Reporting by Uday Sampath in Bengaluru; Editing by Sriraj
Kalluvila)
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