Target announces full-year 2023 results, with revenue up 48.3%

It is learned that on March 6, Target announced its fourth quarter and full year earnings for 2023.

The financial report shows that in the fourth quarter of 2023, Target's Q4 total revenue was US$31.9 billion, a year-on-year increase of 1.7%; operating income was US$1.9 billion, a year-on-year increase of 60.9%; net profit increased from US$870 million in the same period last year to US$1.38 billion, and earnings per share increased from US$1.89 to US$2.98; comparable total sales decreased by 4.4%.

For the full year 2023, Target's full-year sales will be US$105.8 billion, a decrease of 1.7% compared with the previous year; its full-year operating income will be US$5.7 billion, an increase of 48.3% compared with the previous year; and its full-year gross profit margin will be 26.5%.

Target's stock price also rose after the earnings report, thanks to a significant increase in earnings. As of Tuesday's close, Target's stock price has risen by more than 17% so far this year.

The market expects that as inflation slows, consumers will be more motivated to buy discretionary items, which could boost Target's sales and profits in 2024. Wall Street analysts expect Target's sales to grow by about 1% in 2024.

Faced with competition from retailers such as Temu and Shein, Target is taking steps to attract consumers who like to buy low-priced goods. In January this year, Target launched a low-price private brand "Dealworthy", most of which are priced below $10, covering clothing, accessories, beauty products, electronics and home products.

At the same time, it is learned that Target will launch and expand its private label program in 2024, and will re-launch the loyalty membership program Target Circle in April this year; in addition, the private label program Target brands will launch and expand several private labels.