Target Exceeds Earnings Expectations with Improved Sales and Traffic, Over $2B Increase in Operating Income
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Comparable sales and traffic trends improved for the second quarter in a row, led by 13.6% growth in same-day services like Drive Up.
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Fourth quarter and full year GAAP and Adjusted EPS were $2.98 and $8.94 respectively, well above expectations.
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Full year operating income grew nearly $2 billion to over $5.7 billion. Efficiency efforts drove over $500 million in savings.
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Cash flow from operations more than doubled from the prior year to over $8.6 billion.
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Inventory levels were maintained by category which led to lower markdowns, better operations, and stronger in-stock measures compared to 2022.