Target Beats Q4 Earnings Expectations, Sees Return to Growth in 2023 After Cost Cuts
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Target reported strong Q4 earnings, beating expectations on both revenue and profit. Adjusted earnings jumped 57.8% year-over-year.
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Traffic improved in Q4 compared to earlier in 2022. Discretionary sales categories also saw growth after declines earlier in the year.
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Target expects to return to positive comparable sales growth in Q2-Q4 of 2023 after a decline in Q1.
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Target pulled $500 million in costs out of its business in 2022 and sees room for $2-3 billion in long-term savings through efficiency gains.
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Target will announce details on enhancing its loyalty program to provide more value to consumers. The goal is to better compete with Amazon Prime.