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Target Hits Earnings Mark

Published March 7, 2025

Target Corporation (TGT) announced its fourth quarter and full-year earnings report on Tuesday, March 4. Despite reporting better-than-expected revenue and earnings, the retailer’s shares dropped almost 5% following the earnings release.

Target reported quarterly revenue of $30.92 billion. This was down 3% from revenue of $31.92 billion in the same quarter last year and above analysts’ expectations of $30.82 billion. Full-year revenue came in at $106.57 billion, down 1% from $107.41 billion the previous year.

“Our team grew traffic and delivered better-than-expected sales and profitability in our biggest quarter of the year,” said Target CEO, Brian Cornell. “Consumers continue to be drawn to the everyday discovery and delight that only Target can deliver, and we are committed to leveraging our strategy, scale and unique position in retail to build on this distinct competitive advantage and drive long-term profitable growth.”

The company reported net income of $1.10 billion for the quarter or $2.41 per share. This is a decrease from net income of $1.38 billion or $2.98 per share in the same quarter last year. For the full year, Target reported net income of $4.09 billion.

Target’s total comparable sales increased 1.5% in the quarter, partially attributed to an increase in digital comparable sales of 8.7%. During the fiscal year, Target opened 22 net new stores, bringing its total to 1,978. Target’s gross margin rate declined to 26.2% compared to 26.6% in the fourth quarter of last year. The decrease was attributed to higher digital fulfillment and supply chain costs as well as higher promotional and clearance markdown rates. Target expects to earn between $8.80 to $9.80 per adjusted share in fiscal year 2025.

Target Corporation (TGT) shares ended the week at $115.08, down 8% for the week.

AutoZone Announces Earnings

AutoZone, Inc. (AZO) released its second quarter earnings report on Tuesday, March 4. The auto parts company’s shares fell by 1% after reporting an increase in sales but falling short of analysts’ revenue and earnings estimates.

The company reported net sales of $3.95 billion during the quarter, falling short of analysts’ expectations of $3.98 billion. This was up over 2% from $3.86 billion in sales during the same quarter last year.

“I want to thank our AutoZoners for delivering solid results this quarter,” said AutoZone CEO, Phil Daniele. “We are excited about our momentum heading into the back half of the fiscal year and we are well prepared for our spring and summer selling season. As we continue to invest in our business, we remain committed to our disciplined approach of increasing earnings and cash flow, all while delivering strong shareholder value.”

AutoZone reported net income of $487.92 million for the quarter or $28.29 per adjusted share. This was down from $515.03 million or $28.89 per adjusted share in the same quarter last year.

The Memphis, Tennessee-based company saw a 1.9% increase in its domestic same store sales for the quarter and an 8.2% decrease for international same store sales. During the second quarter, AutoZone opened 45 net new stores, including 28 stores in the U.S., 13 stores in Mexico and four in Brazil. Currently, the company has a combined total of 7,432 stores globally. AutoZone returned $329.4 million to shareholders through share repurchases in the second quarter and has $1.3 billion remaining authorized under its share repurchase program.

AutoZone, Inc. (AZO) shares ended the week at $3,614.97, up 3% for the week.

Abercrombie & Fitch Announces Results

Abercrombie & Fitch Co. (ANF) announced its fourth quarter and full-year earnings report on Wednesday, March 5. The clothing company’s mixed report met analysts’ expectations but projected weak future guidance which resulted in its shares dropping 15% following the release.

Revenue for Abercrombie’s fourth quarter reached $1.58 billion. This is up 9% from $1.45 billion in revenue at this time last year and exceeded consensus estimates of $1.57 billion in revenue for the quarter. Full-year sales came in at $4.95 billion, a 16% increase from $4.28 billion in fiscal 2023.

“In fiscal 2024, we once again delivered on our commitments to our global customers and shareholders,” said Abercrombie’s CEO, Fran Horowitz. “We enter fiscal 2025 with highly relevant brands, an agile playbook, and a motivated global team driven by a culture of innovation and growth. Our expectation in 2025 is to build on the past two years of outstanding results and again deliver profitable growth while strengthening our brands and operating model.”

Abercrombie reported net income of $187.23 million or $3.57 per diluted share. This is an increase from net income of $158.45 million or $2.97 per adjusted share in the same quarter last year. For the full year, the company reported net income of $566.22 million or $10.69 per diluted share. This was up from $328.12 million or $6.22 per adjusted share in fiscal 2023.

The Ohio-based company, which operates 789 Abercrombie and Hollister clothing stores, saw comparable sales growth of 14% year-over-year. Revenue in Abercrombie’s Americas segment reported an 11% increase to $1.32 billion for the quarter, and its Europe, Middle East and Africa segment returned an increase of 2% to $224.47 million. Sales in the Asia-Pacific region decreased 4% to $40.73 million. The company issued its full year 2025 guidance and expects sales growth to increase 3% to 5% and earnings per diluted share of $10.40 to $11.40.

Abercrombie & Fitch Co. (ANF) shares ended the week at $86.03, down 17% for the week.

The Dow started the week of 3/3 at 43,900 and closed at 42,802 on 3/7. The S&P 500 started the week at 5,968 and closed at 5,770. The NASDAQ started the week at 18,923 and closed at 18,196.