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.