Dive Brief:
- Target announced Wednesday an increase in same-store sales and profits for its fourth quarter.
- Same-store sales at Target stores open more than a year rose 3.8%, beating the company's forecast of a 3% increase. Revenue also beat expectations, with the retailer posting $21.75 billion compared to the $21.63 billion forecasted.
- Target reported a $3.6 million after-tax loss in the fourth quarter due to its plan to discontinue operating Canadian stores, announced last month.
Dive Insight:
It seems that Target CEO Brian Cornell's vision for Target is slowly forming and turning out some pleasing results. Cornell was the driving force behind Target's retreat from Canada, and has been pushing for further technological innovation at the retailer and a revamp of its key merchandise categories.
"We're pleased with our fourth quarter financial results, which were driven by better-than-expected sales and particularly strong performance in our signature categories-style, baby, kids and wellness," Cornell said in a press release.
"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."