Target soars after comparable sales dazzle in holiday quarter
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Target Corporation (NYSE:TGT) soared in early trading on Monday after sailing past comparable sales expectations with its Q4 earnings report.
Comparable sales rose 8.9% during the quarter on top of 20.5% increase a year ago. Digital sales growth rose 9.2% during the quarter.
Operating income was up 14.1% during the quarter to $2.1B vs. $1.8B in 2020. Gross margin rate came in at 25.7% vs. 26.8% a year ago. The drop reflected pressure from increased supply chain costs due to increased compensation and headcount in the company's distribution centers as well as higher freight and merchandising costs.
Target (TGT) repurchased $2.3B worth of shares during the quarter, retiring 9.7M shares of stock at an average price of $237.00. The retailer had approximately $12.3B of remaining capacity at the end of the quarter under the repurchase program approved by the board last year.
"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," stated CEO Brian Cornell on the quarter.
Target (TGT) is holding an investor event today during which it will highlight long-term growth targets.
Shares of Target (TGT) jumped 10.52% higher to $221.58 in premarket action vs. the 52-week trading range of $166.83 to $268.98.