Target Reports Strong Holiday Sales Growth but Warns of Profit Challenges

The retailer increased its fourth-quarter sales forecast but maintained its profit outlook, citing heavy reliance on discounts and promotions.

Target's comparable sales during the holiday season grew by 2%, with total sales increasing 2.8% year-over-year for November and December.
Digital sales rose by nearly 9% compared to the previous holiday period, driven by same-day delivery services and growth in its third-party marketplace, Target Plus.
Despite strong sales, Target did not revise its profit forecast, signaling that deep discounts likely impacted margins.
Promotional events like Black Friday, Cyber Monday, and Circle Week contributed significantly to sales, though consumer spending outside these periods remained cautious.
Leadership changes were announced, including new appointments for Chief Stores Officer and Chief Information Officer, effective in February.