Target shares soar after dodging inflation, boosting 2022 outlook
Target stock surged more than 12%
US retail sales surge 3.8% in January
National Retail Federation CEO Matt Shay discusses the surge in retail sales and weighs in on inflation and labor shortages.
Target shares jumped more than 12% Tuesday morning after the retailer lifted its outlook for 2022 despite surging inflation.
Employees restock toys at a Target Corp. store on Black Friday in Dallas, Texas (Photographer: Laura Buckman/Bloomberg via Getty Images) (Laura Buckman/Bloomberg via Getty Images / Getty Images)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TGT | TARGET CORP. | 165.37 | -1.16 | -0.70% |
The retailer has seen demand surge during the pandemic, reporting $106 billion in total revenue for 2021 and showing growth of nearly $28 billion, or more than 35%, over the past two years.
Target posted an 8.9% jump in comparable sales for the holiday quarter and beat on earnings, posting adjusted earnings per share of $3.19, up from Wall Street's expectations of $2.85. Traffic surged too, with more than 95% of Target's sales taking place in its stores, the company noted.
A Target store is shown in Philadelphia on Wednesday, Nov. 17, 2021. (AP Photo/Matt Rourke / AP Newsroom)
TARGET HIKES PAY TO $24 PER HOUR FOR SOME EMPLOYEES
"Our strong fourth-quarter performance capped off a year of record growth in 2021, reinforcing the durability of our business model and our confidence in long-term profitable growth," Target CEO Brian Cornell said in a statement.
Looking ahead, the retailer said it expects low- to mid-single-digit revenue growth this fiscal year, low-single-digit growth in operating margin dollars, and adjusted earnings per share growth in the high single digits.
This file photo shows the entrance to a Walmart in Pittsburgh. (AP Photo/Gene J. Puskar, File) (AP Photo/Gene J. Puskar, File / AP Newsroom)
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WMT | WALMART INC. | 59.86 | +0.77 | +1.30% |
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Target's results for the quarter ending Jan. 29 follow Walmart's solid forecast last month, when consumers accelerated their retail spending despite an 11-year low in consumer confidence.