Target Reports Fourth Quarter and Full-Year 2016 Earnings

Fourth quarter comparable sales decreased 1.5 percent, compared to the guidance range of (1.5%) to (1.0%)1.
Fourth quarter comparable digital channel sales increased 34 percent, contributing 1.8 percentage points of comparable sales growth.
Fourth quarter comparable sales growth in Signature Categories outpaced total comparable sales by nearly 3 percentage points.
Fourth quarter comparable traffic increased 0.2 percent.
Fourth quarter GAAP earnings per share (EPS) from continuing operations of $1.46 and Adjusted EPS2 of $1.45, compared with the Company’s guidance range of $1.45 to $1.55.
For full-year 2016, GAAP EPS from continuing operations declined 12.7 percent to $4.58, reflecting a loss of $0.44 on the early retirement of debt.
Full-year Adjusted EPS2 increased 6.7 percent to $5.01.
Target returned $5.0 billion to shareholders in 2016 through dividends and share repurchases.

Target Corporation (NYSE: TGT) today announced its fourth quarter and full-year 2016 results. The Company reported GAAP earnings per share (EPS) from continuing operations of $1.46 in fourth quarter and $4.58 for full-year 2016, compared with $2.31 and $5.25 in 2015, respectively. Fourth quarter Adjusted EPS were $1.45, down 4.6 percent from $1.52 in 2015. Full-year Adjusted EPS of $5.01 was 6.7 percent higher than $4.69 in 2015. The attached tables provide a reconciliation of non-GAAP to GAAP measures. All earnings per share figures refer to diluted EPS.

“Our fourth quarter results reflect the impact of rapidly-changing consumer behavior, which drove very strong digital growth but unexpected softness in our stores,” said Brian Cornell, chairman and CEO of Target. “At our meeting with the financial community this morning, we will provide detail on the meaningful investments we’re making in our business and financial model which will position Target for long-term, sustainable growth in this new era in retail. We will accelerate our investments in a smart network of physical and digital assets as well as our exclusive and differentiated assortment, including the launch of more than 12 new brands, representing more than $10 billion of our sales, over the next two years. In addition, we will invest in lower gross margins to ensure we are clearly and competitively priced every day. While the transition to this new model will present headwinds to our sales and profit performance in the short term, we are confident that these changes will best-position Target for continued success over the long term.”
more detail at:  http://investors.target.com/phoenix.zhtml?c=65828&p=irol-newsArticle&ID=2249998

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