Minneapolis — Target Revenue and traffic at its stores fell for another quarter on Tuesday, even as the company touted strong sales in some of its key merchandise categories.

The big-box retailer, which is turning a profit, said sales and traffic trends picked up in the final two months of the holiday quarter. Then, sales turned positive year over year in February, the start of the quarter.

Target CEO Michael Fidelk described the shift in a press release as “an important milestone on our path to returning to growth this year” and said it reinforced “my confidence in the momentum we are building and the future we are creating together.”

Target expects net sales to rise about 2% this fiscal year from the previous year and expects the metric to grow in every quarter this year. The retailer said net sales growth this year will reflect a modest increase in comparable sales. The company added that its new stores and non-merchandise sales, such as advertising and memberships, would contribute more than 1 percentage point to growth.

Target said it expects full-year adjusted earnings per share to be in a range of $7.50 to $8.50. The most recent full-year adjusted earnings per share was $7.57.

Fidelk, who Get to the top of the company He will try to convince Wall Street at an investor conference Tuesday morning at its Minneapolis headquarters on February 1 that the retailer can end its sales slump.

Here’s how the company’s fiscal fourth-quarter report compared with Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):

• earnings per share: Adjusted $2.44, expected $2.16
• income: US$30.45 billion, expected US$30.48 billion

The big-box retailer missed Wall Street’s fourth-quarter revenue forecasts, although analysts had expected weak sales. its quarterly revenue This was a decrease of approximately 1.5% from US$30.92 billion in the same period last year.

Customer traffic to the company’s stores and website has declined for four consecutive quarters.

Target’s net income fell to $1.05 billion, or $2.30 a share, in the three months ended Jan. 31, compared with $1.1 billion, or $2.41 a share, in the same period. a year ago. Excluding one-time charges such as legal settlement proceeds and business transformation costs, Target had adjusted earnings per share of $2.44.

The target is trying to end Results for several years have been disappointing This was driven by a combination of corporate missteps and economic factors. Its annual sales have been essentially flat for four years, after a surge in annual revenue during the pandemic.

The stock has fallen nearly 32% over the past three years as of Monday’s close, but is up nearly 16% so far this year. The company’s shares closed at $113.17 on Monday, giving it a market value of $51.24 billion.

As it tries to turn around its business, Target The company laid off 1,800 people In October, there were the first major layoffs in a decade.

Some Target customers tell CNBC They shop elsewhere after noticing changes such as cluttered stores and lackluster merchandise, or object to the company’s social stance, e.g. Rollback of major diversity, equity, inclusion initiatives. The company acknowledges Backlash to DEI decision hurts sales And result in losing market share to competitors.

Target’s challenges in attracting shoppers remain. Comparable sales, an industry metric that excludes short-term factors such as store openings and closings, also known as same-store sales, fell 2.5% year-over-year in the fourth quarter. This reflected a 3.9% decline in comparable sales in Target stores and a 1.9% increase in comparable sales on Target’s website and app.

Transaction volume at Target stores and websites fell 2.9% year over year. The average amount customers spent on these transactions increased 0.4% year over year.

exist Interviewed by CNBC Speaking at Target headquarters this fall, Fidelk said he would prioritize restoring the company’s reputation for style and design, improving the customer experience and leveraging technology to improve performance.

He echoed those key goals in the company’s press release outlining fourth-quarter earnings.

“Our team is deeply committed to writing Target’s next chapter of growth, rooted in strengthening our merchandising authority, delivering a premium and differentiated shopping experience, advancing our use of technology, and continuing to serve and invest in our teams and communities,” he said.

Last month, Target also announced it would Increase investment in in-store workforce and eliminate approximately 500 other positions At distribution centers and regional offices, try to address shopper concerns about out-of-stock items, long checkout lines and other store conditions. However, the company declined to say how much more money it would spend.

Target is known for selling clothing, home furnishings, seasonal items and other trend-driven discretionary items that customers often make impulse purchases as they browse the aisles during a “Target run.” However, rising prices for food, utilities and other necessities, driven by inflation and tariffs, have undermined U.S. consumers’ willingness to buy items not on their shopping lists.

Target’s performance in recent years has been inconsistent with that of retail rivals such as Walmart, Costco and TJ Maxx owner TJX, which have posted strong sales, attracted shoppers across income levels and grown in categories such as apparel and home goods, while Target has struggled.

In addition to offering products like groceries, clothing and home goods, Target is trying to sell more ads and membership subscriptions to customers. The company’s non-merchandise sales grew more than 25% in the fourth quarter, driven by membership revenue more than doubling year-over-year, double-digit percentage growth in advertising business Roundel and more than 30% growth in third-party markets.

Same-day delivery volume for Target 360 Plus increased by more than 30% year-on-year. Subscription service costs $99 per year or $10.99 per month.