Target Lifts Guidance After Record Black Friday-Cyber Monday Sales

Record post-Thanksgiving sales have caused Target to raise its sales guidance.

The retailer announced Thursday (Jan. 16) that it now anticipates an approximately 1.5% increase in fourth-quarter comparable sales after earlier projecting flat growth.

“Compared with its third-quarter sales trends, the company saw a meaningful acceleration in discretionary categories during the holiday timeframe, most notably in apparel and toys, and saw continued strength in beauty and frequency categories,” Target said in a news release.

According to the release, total sales for November and December rose 2.8% compared to 2023, reflecting a 2% increase and record high sales for Black Friday and Cyber Monday. Digital sales for the two holiday months combined rose nearly 9% year over year, reflecting more than 30% growth in same-day delivery via the company’s Target Circle 360 program.

“In addition, the company saw nearly 50 percent growth in Target Plus, the company’s third-party marketplace,” the company said. “More than 97 percent of the company’s sales were fulfilled by stores.”

The uptick is good news for Target following a lengthy stretch in which it tried to jumpstart sales amid a downturn in consumer spending on nonessential goods. The company lowered its profit guidance last year, while chief competitor Walmart continued to report healthy earnings.

As recently as late November — just before Thanksgiving — Target CEO Brian Cornell was warning that customers were prioritizing essentials and seeking value amid economic uncertainty and rising costs.

“Consumers tell us their budgets are being stretched,” Cornell said on the company’s third-quarter earnings call. “They’re becoming resourceful, focusing on deals, then stocking up when they find them. Consumers allow themselves to splurge a little bit when they find the right item.”

This cautious spending behavior could be seen in Target’s third-quarter results, which showed modest growth amid a challenging retail environment. The company reported a 0.3% increase in comparable sales, down from its 2% growth in the second quarter.

“This slower pace underscored the ongoing volatility in the consumer market, as shoppers, still contending with economic pressures, have become more discerning in their purchasing habits,” PYMNTS wrote in November.

Also Thursday, Target announced a series of leadership changes. Mark Schindele, the company’s chief stores officer, will retire, replaced by Adrienne Costanzo, now serving as senior vice president of store operations.

Brett Craig, executive vice president and chief information officer, is also retiring. Prat Vemana, executive vice president, chief digital and product officer, will take over Craig’s role and stay on the leadership team.

And Sarah Travis, senior vice president for Target’s social commerce/digital ad operations, will be promoted to chief digital and revenue officer.