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• Comparable sales rose 8.9% in the quarter ended January 29 from the previous year
• The retailer posted revenue of $106 billion for the full-year
Target Corp (NYSE: TGT) reported sales growth in the latest quarter. The holiday season helped in attracting customers to its stores.
Comparable sales rose 8.9% in the quarter ended January 29 from the previous year, the retailer said. Digital sales increased 9.2%.
The retailer posted revenue of $106 billion for the full year, compared to $77.1 billion in 2020.
Other retailers such as Walmart Inc. (NYSE: WMT) also reported strong sales in the quarter due to the holiday season.
Even though prices are increasing; consumer spending remains strong. The Commerce Department said that spending rose 2.1% in January from the previous month.
“Consumers are still worried about Covid, but they are looking for that touch of normal in their lives,” Target Chief Executive Brian Cornell told analysts Tuesday.
Revenue expectations
For 2022, Target expects revenue and adjusted earnings per share to increase at a slower rate than 2021.
Also Read: Walmart to hire over 3,000 delivery drivers
The retailer plans to invest in its stores and digital business this year. Around 19% of Target’s sales come from its digital business, compared to 8.8% in 2019.
The executives said the company is building large sortation centers and warehouses near city centers such as Chicago in order to expand their operations.
Target also plans to expand Rounder, its internal media operation, to be a $2 billion operation over the coming years.
Target shares rose 9.8% on Tuesday.
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