Target Corp reported an operating income increase to $5.7bn in FY23 from $3.85bn a year earlier.

Sales sank to $105.8bn from $107.6bn.

However, in the fourth quarter, comparable sales declined by 4.4%. Total revenue increased 1.7% on the back of cost-cutting measures taken and actions on inventory management. In 2022 Target pumped $5bn to continue scaling its operations in 2022, with supply chain among its areas of focus.

In the last year, Target Corp says it saved $500m through efficiency initiatives.

“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,” said Brian Cornell, chairman and chief executive officer of Target Corporation.

“Throughout the season, guests responded to newness, value, and the inspiration and ease of our in-store and digital shopping experience. Looking ahead, we’ll continue to invest in the strengths and differentiators that have delivered strong financial performance over time. We’ll also roll out fresh innovations, including our new Target Circle membership programme, as part of our roadmap for growth aimed at meeting consumers where they are, reigniting sales, traffic and market share gains, and positioning Target for profitable growth in 2024 and beyond.”

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Target Corp has issued a sales warning for the year’s first quarter and expects a comparable sales decline of 3-5%.

First-quarter GAAP and Adjusted EPS are both expected to range from $1.70 to $2.10. For the full year, the company expects a modest increase in comparable sales in a range from flat to 2%. GAAP EPS and Adjusted EPS are both expected to range from $8.60 to $9.60.