Target Reports on Q4 and FY 2017

03/06/2018

In a press release dated March 6th Target Corporation (TGT) announced results for the 4th Quarter and Fiscal 2017 ending February 3rd 2018.

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)

4th Quarter Ending. Feb. 3rd ‘18/Jan. 28th ‘17

2017

2016

Difference (%)

Sales:

$22,766,000

$20,690,000

+10.0

Gross profit:

$5,971,000

$5,502,000

+8.5

Operating income:

$1,750,000

$1,888,000

-7.3

Pre-tax Income

After-tax Income

$1,018,000

$1,101,000

$1,208,000

$817,000

-15.7

+34.8

Diluted earnings per share:

$2.02

$1.45

+39.3

Gross Margin (%)

26.2

26.5

-1.1

Operating Margin (%)

7.7

9.1

-15.4

After-tax Profit Margin (%)

4.8

4.0

+20.0

Long-term Debt:

$11,317,000

$11,031,000

+2.6

12 Months Trailing:

     

Return on Assets (%)

7.3

   

Return on Equity (%)

23.9

   

Operating Margin (%)

6.6

   

Profit Margin (%)

3.8

   

Total Assets

$38,999,000

$37,431,000

+4.2

Market Capitalization

$39,020,000

   

For Q4, TGT posted a 3.6 percent increase in same-store sales and 3.2 percent higher traffic. E-commerce increased by 29 percent over the corresponding quarter of FY 2016.

For FY 2017 (FY 2016 in parentheses) TGT earned $2.934 billion ($2.737 billion) on sales of $71.879 billion ($69.495 billion) with an EPS of $5.33 ($4.70).

2018 Guidance included “low single-digit increase in same-store sales and an EPS range of $5.15 to $5.45.

52-Week Range in Share Price: $48.56 to $78.70

Market Close, pre-announcement 5th March: $75.61. Close 6 th March $71.90

Forward P/E: 13.6

In commenting on results Brian Cornell, Chairman and CEO stated: “our fourth quarter results demonstrate the power of the significant investments we've made in our team and our business throughout 2017. Outstanding execution of Target's strategic initiatives during the year delivered strong fourth quarter traffic growth in our stores and digital channels, which drove healthy comparable sales in every one of our five core merchandise categories," He added "we plan to continue investing in our team and make 2018 a year of acceleration in the areas that set Target apart- our stores, exclusive brands, and rapidly-growing suite of fulfillment options. While we have a lot left to accomplish, our progress in 2017 gives us confidence that we are making the right long-term investments to best position Target for profitable growth in a rapidly changing consumer and retail environment."














































































































































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