On March 1st Target Corporation (TGT) posted results for Q4 and FY2021 ending January 29th. For the quarter, the company earned $1,544 million on revenue of $30,996 million with a diluted EPS of $3.21. For the corresponding Q4 of FY2020, Target earned $1,380 million on sales of $27,997 million with a diluted EPS of $2.73. Revenue was 9.4 percent higher and net earnings increased by 11.9 percent.
For fiscal 2021, the company posted net earnings of $6,946 million on revenue of $104,611 million with a diluted EPS of $14.10. Comparable figures for FY2020 were net earnings of $4,368 million on revenue of $93,561 million with a diluted EPS of $8.64. Revenue for the year increased by 13.3 percent and earnings by 59.0 percent.
In commenting on results Brian Cornell Chairman and CEO stated “Our strong fourth-quarter performance capped off a year of record growth in 2021, reinforcing the durability of our business model and our confidence in long-term profitable growth," He added "As we look ahead, we'll keep investing and delivering on all that has earned the loyalty and trust of our guests; that starts with our outstanding team and includes continued differentiation through affordability, assortment, ease and convenience."
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The Company release stated “For fiscal year 2022, the Company expects low-to mid-single digit revenue growth, an operating margin rate of eight percent or higher, low single-digit growth in operating margin dollars, and high single-digit growth in Adjusted EPS. The Company expects that quarterly, year-over-year profit performance will be variable during the year but to improve as the year progresses. The Company expects its first quarter 2022 operating margin rate will be below the first quarter 2021 rate of 9.8 percent”.
Comparable same-store sales increased 8.9 percent in comparison with Q4 FY 2020. During FY 2021 digital sales increased by 20.8 percent, representing 21.8 percent of revenue.
On January 29th Target posted total assets of $53,811 million, up 5.0 percent from the end of FY2020. Long-term debt and lease obligations attained $17,671 million, 12.6 percent higher than at the end of the previous fiscal year.
At the end of FY2021, Target Corporation operated 1,926 stores with a total retail area of 243,284 square feet. The company invested $3,544 million in property and equipment during fiscal 2021.
Target Corporation had an intraday market capitalization of $3,544 million on March 1st. The Company has traded over the past fifty-two weeks in a range of $166.83 to $268.95 with a 50-day moving average of $217.39. TGT trades with a forward P/E of 15.0. On February 28th the share closed at $221.02 but after the release TGT opened at $223.07 on March 1st.
Twelve-month trailing operating margin was 8.3 percent and profit margin 6.6 percent. The Company generated a return on assets of 10.2 percent and 50.1 percent on equity.