Consumer

Target Jumps as Better Inventory Management Fuels Profitability

  • Retailer pares its stockpile further, reducing markdown risk
  • Company sees full-year comparable sales flat to slightly up
A Target store in New York.Photographer: Shelby Knowles/Bloomberg
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Target Corp. jumped on Tuesday after fourth-quarter profit beat estimates and the retailer announced plans to renovate and expand its fleet of stores.

The company reported adjusted earnings of $2.98 a share, above Wall Street’s estimate, with better inventory management helping to drive the results. Comparable sales declined 4.4%, slightly beating estimates but falling for the third consecutive quarter.