Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Target Same-Day Delivery, Store Pick-up Demand Fires up Holiday Quarter Sales

Target store sign. Shutterstock.

Target Corp beat analysts’ estimates for holiday quarter sales on Tuesday, powered by the company’s same-day delivery and store pick-up services that helped fulfill resilient demand for home goods, toys and groceries during the pandemic.

Over the past year, Target and Walmart Inc consistently performed better than Wall Street expected as the deep-pocketed national retail chains amped up their online businesses during the health crisis and swiped market share from smaller rivals who rely more on their physical stores.

Still, Target held back on providing sales and earnings forecast for fiscal 2021, citing continued uncertainty over consumer shopping patterns amid the health crisis.

The company’s comparable sales rose 20.5 percent in the fourth quarter, comfortably beating analysts’ estimates for a 16.4 percent rise, according to IBES data from Refinitiv. Sales through its same-day deliveries and store pick-up services surged 212 percent, as consumers sought quicker ways to get their online purchases.

ADVERTISEMENT

Analysts have, however, warned that the torrid pace of growth would be difficult to repeat in the coming months, as Covid-19 vaccine rollouts raise the promise of a return to something closer to pre-pandemic life.

Target’s comparable sales for the full year are expected to slip 3.6 percent, according to Wall Street brokerages. In February, Walmart said it expects sales and profit growth to slow this year, leading to a fall in its shares.

Total fourth-quarter revenue for Target rose 21.1 percent to $28.34 billion, beating the average estimate of $27.48 billion. Full-year sales rose by over $15 billion, larger than the combined growth of the last 11 years.

Net earnings surged 65.6 percent to $1.38 billion. On an adjusted basis, the company earned $2.67 per share.

By Uday Sampath; Editor: Sriraj Kalluvila

In This Article
Topics

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Chronicle the ‘Retail Apocalypse’ and emerging retail models, including DTC brands.

Op-Ed | How Long Can Adidas Surf the ‘Terrace’ Trend?

As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.


How Rent the Runway Came Back From the Brink

The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
The Business of Beauty Global Awards - Deadline 30 April 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
The Business of Beauty Global Awards - Deadline 30 April 2024