Target Corp (NYSE:TGT) shares surged more than 12% on Tuesday morning after the retail giant reported better-than-expected earnings for the fourth quarter.
Adjusted earnings per share (EPS) came in at $2.98, up 57.6% year-over-year, and ahead of Target’s guidance range of $1.90 to $2.60 and the Wall Street consensus estimate of $2.41.
Revenue grew 1.7% over the year-ago quarter to $31.9 billion, ahead of estimates of $31.8 billion.
“Our team's efforts changed the momentum of our business, further improving our sales and traffic trends in the fourth quarter while driving profitability well ahead of expectations," Target CEO Brian Cornell said in a statement.
For the full year, adjusted EPS was nearly 50% higher than in 2022 at $8.94, above estimates of $8.37.
Full-year sales fell 1.7% to $105.8 billion, missing estimates of $107.36 billion.
Shares of Target, which fell last year due to worries about rising store theft, traded at levels not seen since April 2023, adding 12.1% at about US$168 late morning on Tuesday.