Target Corporation reports FY19 revenue of $78 billion

04 Mar '20

2 min read

Pic: Target Corporation

Target Corporation, US based retail company, posted 1.8 per cent revenue growth to $23.4 billion in fourth quarter (Q4) FY19 ended on February 2, 2020. Revenue for full FY19 grew 3.7 per cent to $78.1 billion compared to last year. Performance in FY19 reflected sales growth of 3.6 per cent and a 6.3 per cent increase in other revenue, the company announced.

Full-year sales in FY19 increased 3.6 per cent to $77.1 billion from $74.4 billion last year reflecting a 3.4 per cent increase in comparable sales combined with sales from non-mature stores. Revenue growth in Q4 was attributable to 1.8 per cent rise in sales and a 9.3 percent increase in other revenue.

Operating income in Q4 FY19 rose 7.3 per cent to $1,198 million compared to $1,117 million in FY18. Operating income margin rate in Q4 was 5.1 per cent in compared with 4.9 per cent in Q4 FY18. Gross margin rate was 26.3 per cent in Q4 compared to 25.7 per cent same period prior year. SG&A (Selling General & Administrative) expense rate was 19.3 per cent in Q4 FY19 compared with 19.0 per cent in same period prior year.

Full-year operating income was $4,658 million in FY19, an increase of 13.3 per cent from $4,110 million last year. Full-year gross margin rate was 28.9 per cent, compared with 28.4 per cent in FY18. Full-year SG&A expense rate was 20.8 per cent in 2019, approximately flat to last year, as Target Corporation reported.

"With eleven consecutive quarters of positive comparable sales growth, driven by healthy performance in both our stores and digital channels, Target's results demonstrate that we've built a sustainable business model that drives strong topline growth and consistent bottom line performance," Brian Cornell, chairman and CEO of Target, said in a press release.

The company in its guidance for FY20 expects a low-single digit increase in comparable sales and a mid-single digit increase in operating income.

Fibre2Fashion News Desk (JL)

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