Bullseye for Target in Q4

By: Miguel A. Rodriguez

09:26, 08 March 2021

Target outperformed expectations for the fourth quarter, as people bought more

Target reported an adjusted EPS of $2.67 on revenues of $28.34 billion for the fiscal fourth quarter of 2020. At the same time, net income rose 66% to $1.38 billion.

The increases could be attributed to keeping their shops open, unlike some of its main competitors, such as Macy’s and Kohl’s, which shut down multiple locations across the US.  Also, Target offered a more extensive range of products from cereals to workout clothes.

Additionally, same-day services have been widely popular among clients. Drive-Up, Target’s curbside pickup service, reported a 500% increase, while home deliveries grew 212%.

In 2020, the company’s sales increased by more than $15 billion – higher than its total sales growth over the prior eleven years.

No predictions were made about the future, given that the COVID-19 pandemic made it difficult to forecast consumer patterns.

Following the report, Target stock price went up 1%. Over the past year, Target stock price added nearly 81%, pushing the market valuation at $93.19 billion.

Source: cnbc.com

Share this article

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.