Target swings to profit, comparable-store sales rise again

Target swung back to a profit for the fourth quarter and it reported its sixth consecutive quarter of rising comparable-store sales.

The results Wednesday show that Target has made some progress in reinvigorating its business and winning back shoppers.

Target earned $1.43 billion, or $2.32 per share in the quarter ended Jan. 30. That compares with a loss of $2.64 billion, or $4.10 per share in the year-ago period when the company incurred hefty charges related to its pullout of its Canadian business.

Still, adjusted earnings results were $1.52 per share, which was a bit below the $1.54 per share estimate, according to FactSet.

Revenue slipped 0.6 percent to $21.63 billion on the sale of its pharmacy business to CVS, also just shy of Wall Street expectations.

Shares slipped 55 cents to $73.44 before the opening bell, but are up almost 11 percent over the past 12 months.

Target initiated an aggressive campaign to re-establish itself in 2014 under new CEO Brian Cornell after a series of headline grabbing setbacks, including a major debit and credit card breach that dragged on sales and profits for months.

It brought groceries into Target stores in hopes of making it a one-stop destination for customers, but it seemed to lose its focus on the trendy fashions that fueled its astronomical growth.

Under Cornell, the company got rid of side projects, like its money-losing Canadian operations, and it shook up its leadership ranks.

And it re-emphasized its priority on fashion, as well as baby products and home decor.

Sales at stores open at least a year rose 1.9 percent for the quarter.

That metric for its so-called signature categories — fashion, baby, kids and wellness, grew more than three times faster than the company average during the fourth quarter.

"Target's results demonstrate that we are focused on the right strategic priorities," said Cornell in a company release.