• Q4 net loss $2.64bn, versus $520m profit
  • Sales up 4.1% to $21.8bn
  • Comparable store sales rise 3.8%
Target recorded charges of over $5.1bn linked to its Canada exit

Target recorded charges of over $5.1bn linked to its Canada exit

Retail giant Target Corp slipped to a huge fourth-quarter loss, thanks to mammoth charges of over US$5.1bn linked to its exit from the Canadian market.

However, sales and comparable store sales both increased, and gross margin was 28.5%, up from 27.6% in the same period last year.

Chairman and CEO Brian Cornell said the company was “pleased” with the results, driven by better-than-expected sales and particularly strong performances from style, baby, children’s and wellness.

“We’re seeing early momentum in our efforts to transform Target, and our team is entering the new fiscal year with a singular focus on continuing to differentiate our merchandise assortment and shopping experience while controlling costs by reducing complexity and simplifying the way we work,” Cornell added.

Janney Capital Markets analyst David Strasser gave a positive reaction to the results, saying in a note: “In this early stage, changes are working. The mix towards apparel/home appears to be in the early stages of success.”