Target reported its Q4 and 2022 financial results at its annual investor day in New York on 2/28/23. With a solid close to the year, Target delivered the twenty-third straight quarter of comp growth, however, earnings were down 40% year over year driven by inventory challenges, supply chain costs, and increased shrink. All five of its core merchandising categories delivered unit share gains in the market driven by strong Guest engagement and loyalty. Target expects 2024 to return to the “new normal” which translates to comp guidance in a range of down low single digits to up low single digits. Mix will continue to be challenged with forecasted softness in discretionary categories and a moderating rate of growth in frequency categories.
“We’re pleased that our business delivered comparable sales growth in the fourth quarter, in what continues to be a very challenging environment. Strength in Food & Beverage, Beauty, and Household Essentials offset ongoing softness in discretionary categories. This performance highlights the benefit of our multi-category merchandise assortment, which drives relevance with our guests in any environment, and is a key reason we grew traffic every quarter last year,” said Brian Cornell, Chairman and Chief Executive Officer of Target Corporation.
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