The Minneapolis-based discount retailer earned $1.01 billion, or an adjusted $2.79 per share, as revenue rose 21% to $22.34 billion. Wall Street analysts surveyed by Refinitiv were expecting adjusted earnings of $1.60 per share on revenue of $20.93 billion.
Digital comparable sales soared 155% from a year ago, accounting for 10.9 percentage points of the 20.7% comparable sales growth. Same-day services, which include order pick up, drive up, and Shipt, grew 217%.
“Our strong results in 2020 reflect the benefits of our multi-year effort to build a durable and flexible model, with a differentiated assortment and a suite of industry-leading fulfillment options,” Target CEO Brian Cornell said in a statement.
Sales increased across all categories with electronics growing more than 50%, home up in the mid-20% range and apparel increasing by almost 10%. The average ticket rose 15.6% from a year ago. Overall, the company said it won $6 billion of market share.
Target declined to provide updated guidance after withdrawing its outlook in the first quarter due to the uncertainties caused by COVID-19.
The company raised its quarterly dividend by 2 cents to 66 cents per share and reinstated its share repurchase program, which has $4.5 billion of remaining capacity.
Target shares were up 27% this year through Tuesday, outperforming the S&P 500's 18% gain.