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Key points Target stock was own about 3% on Tuesday Target (NYSE:TGT) stock was heading lower on Tuesday despite a solid revenue and earnings beat by the big box retailer in Q4. The stock was down about 3% on Tuesday to about $117 per share, most likely on concerns about the impact of tariffs and flagging consumer confidence. Target generated net sales of $30.9 billion in the quarter ended February 1, down about 3.1% year over year. The sales results did, however, top analysts’ estimates of $30.76 billion in revenue. Store traffic was up 2.1% year over year,. On the earnings side, Target made $1.1 billion in the quarter, which was down 20% from the same quarter a year ago. Earnings were $2.41 per share, which was better than the $2.25 per share that analysts projected. The fourth quarter gross margin – net sales minus cost of sales — was 26.2%, down from 26.6% in the year ago quarter. This was due to higher digital fulfillment and supply chain costs and higher promotional and clearance markdown rates.  Among the bright spots, Target’s fourth quarter comparable store sales grew 1.5%, led by strong increases in apparel and hardlines sales. Hardline items are bigger ticket goods, like appliances, and are often synonymous with consumer durables. Also, digital comparable sales, or online purchases, spiked 8.7% in the fourth quarter. Within digital sales, same-day delivery through Target Circle 360 jumped more than 25% compared to the same quarter a year ago. “Our team grew traffic and delivered better-than-expected sales and profitability in our biggest quarter of the year,” Brian Cornell, chair and CEO of Target, said. “Results were led by strong performance in Beauty, Apparel, Entertainment, Sporting Goods and Toys.” On tariffs: “Prices will go up” The decline in Target stock Tuesday came on…

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Filed under: News - @ March 5, 2025 5:29 am