Target Corp (NYSE:TGT) stock rose 11.75% (As on March 5, 11:17:10 AM UTC-4, Source: Google Finance) after the company reported better-than-expected earnings for the fourth quarter. The Company’s total comparable sales declined 4.4 percent in the fourth quarter, reflecting comparable stores sales declines of 5.4 percent and a comparable digital sales decline of 0.7 percent. For the trailing twelve months through fourth quarter 2023, after-tax return on invested capital (ROIC) was 16.1 percent, compared with 12.6 percent for the twelve months through fourth quarter 2022. This increase was driven primarily by higher profitability partially offset by an increase in average invested capital. The Company paid dividends of $508 million in the fourth quarter, compared with $497 million last year, reflecting a 1.9 percent increase in the dividend per share. The Company did not repurchase any shares in fourth quarter 2023.  As of the end of the fourth quarter, the Company had approximately $9.7 billion of remaining capacity under the repurchase program approved by Target’s Board of Directors in August 2021. The Company’s fourth quarter 2023 net interest expense was $107 million, compared with $129 million last year, reflecting an increase in interest income partially offset by higher debt levels and the impact of higher floating rates on interest rate swaps.

TGT in the fourth quarter of FY 23 has reported the adjusted earnings per share of $2.98, beating the analysts’ estimates for the adjusted earnings per share of $2.41. The company had reported the adjusted revenue growth of 1.7 percent to $31.9 billion in the fourth quarter of FY 23, beating the analysts’ estimates for revenue of $31.8 billion.  Operating income was $1.9 billion in fourth quarter 2023, an increase of 60.9 percent from $1.2 billion in 2022. Fourth quarter operating income margin rate was 5.8 percent in 2023 compared with 3.7 percent in 2022. Fourth quarter gross margin rate was 25.6 percent, compared with 22.7 percent in 2022, reflecting lower markdowns and other inventory-related costs, lower freight costs, lower supply chain and digital fulfillment costs, and favorable category mix. Shrink costs were lower than a year ago, as continued increases in store loss rates were more than offset by the timing of inventory accruals compared with 2022. Fourth quarter SG&A expense rate was 18.9 percent in 2023, compared with 18.1 percent in 2022.  Full-year SG&A expense rate was 20.1 percent in 2023, compared with 18.9 percent in 2022.  Rate increases in both periods reflect the de-leveraging impact of lower sales combined with higher costs, including continued investments in pay and benefits and inflationary pressures throughout our business partially offset by disciplined cost management.