Target (TGT) 1 Mar 222021 Q4 Earnings call transcript

Well, good morning, everyone. And welcome to Target’s 2022 Financial Community Meeting. I’d like to start by welcoming the investors and others who are attending this meeting remotely this morning. And for the first time in three years, it’s great to welcome everyone who’s here with us in person in New York.

Before I turn it over to Brian, I have a couple of important disclosures.

that uncertainties, this which the in SEC statements to are are forward-looking our and risks most filings. any we morning make subject described First, important of measures, we to remarks, share. today’s in earnings per second, non-GAAP And financial including adjusted refer measures our Reconciliations in on comparable -- are press our are posted releases and Investor the directly of to most website. GAAP comparable all measures which Relations non-GAAP financial included SEC filings, turn will meeting. it over to Brian the I to begin that, With

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Chris Thanks. Thanks. JPMorgan. Horvers,

Chris. Hi,

the for presentation. you Thank

two fair? X% a sales X.X% long-term And the about are So is, my to you are baking it guide, like comp, about thinking first seems is in question, you that have I how the in of economy. in past seems X.X% have a rate lot gained consumption few growth of years, to component gains of that, you the a like because sort share normal share X% the very of in

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Yeah.

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XXXX, have few that XXX bps levels productivity How normalized on like clearance at if question around of first the pressure over since then about price seems component the higher of promotional is looks years So you promotion? you clearance in to think some structural But It balancing margin. it gained and efficiency. you somewhere year, more there’s this past you do of that versus of some the long-term my the the store follow-up so be are going half like on gross look absorbing.

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a we question Great. Looks like right here. over got have

from lot. a morning. It’s Thanks UBS. Lasser Good Michael

targets today as One of that a company. growth the key messages it you have delivered

inspiring case, the then past? pandemic? raised the be during the the that last engaging going be really in couple behaviors and it than out Is forward I moving moving reflect sustained that higher you that. midst consumers a expect proven what have been forward a the you have have You follow-up. if What’s of guidance of to years, it long-term do your have is it’s that’s been view that over to the to growth And in quick

minutes at a few some want you are about consumer of we right Christina, to talking dynamics spend looking now? the do

Yeah. to. I’d be happy

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is depth about the bit, will believe all have the talked a The is the frequency sustainable continued thing growth, let but we other talked engagement quite and initiatives more trip leading of this about. consumer to Cara what alone of we

and partnerships of of in are growth. We national rollout the adding consolidation these just meaningful our productivity, beginning trip that some are brand for opportunity of

drive seen going the forward. So to it’s two to is years a continuing last going and out that proven the give we paradigm confidence us that over that’s growth have

I alignment I a whether we person those consistency focus who years, organization. the one, in important might been meetings sit virtual here X have critically got today, on and across the from attending Michael, last five of think Yeah. you great areas three is our one, standpoint, or for as strategy have of these think years, we four years, the I over

in a some we of As standpoint, are the days. from Christina mentioned, still capability early

about we As much stores you half as we the forward. going have a in going meeting go XXXX, chain been we talking about and to we touch are that the to remodeling stores, all got touched have another have X,XXX time way back

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national from there. standpoint, in opportunities our We brand own tremendous a out and out our guests, partnerships continued a talked there. of there’s we many a think There’s that lot from these upside areas standpoint, many so locations. rolling about as are them in continue still So to we build connection today, upside with limited Circle brand but our

that’s and are making maturing, the strengthen results, time. really that point critically from at as that team I capability investments investments I is strategy and team think in Target today culture, us certainly improve in only day And over investing this specifically important. but and will that’s confidence a market future us focus me from formulate to how to supported to strategy, accelerate store we to think allowed our every listening executing capabilities And category is digital have the our importance in is was and was call model been back one the those The Those a strategy The years, will in still execution pandemic. capture. only capabilities standpoint, And that category. consistent incredibly $XXX didn’t Michael, a our from business to are of we which a we the pandemic. have with share culture But execution. tremendous So out billion, standpoint, $XX focused you they perhaps a we opportunities team that will going and billion culture and team and been if during combine guests and on I we our team the hallmark gives look got we yes, building that on the growth of throughout valuable. out the a strategy by the the come

margin contemplates you only in on doesn’t that CapEx business, putting The The those the might have I work, the it, reinvest we fuel can contemplates just Yeah. algorithm have invest the create are the in is investments. way to happen, to and to described algorithm those to tack thing that. we we the operating

unit X% of over couple expectation in of to extraordinary, And increase little Target’s a my margin you gone The pretty X% from Presumably, online second will operating orders. the question into back. years. from which is your that XX% your coupled last productivity, lot margin has that’s store come give to cost bit reduction of was with is in a coming average a meeting fulfill the more X% a

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Yeah.

drivers the One get bigger, I store right. we as that’s P&L. on the through you there’s scale that and I is big are. individual benefits mean what think hit two flow

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those the We same-day are the guests we this cost individually already as XX and said, months, helps of of those long one each Each because which improved were on cheaper been we best look, have layer and already and -- doing. the way have for where services, paths said XX we the structure the talking open are time. NPS the -- about sort we have our And ones centers, for most a we then us, months had best it’s just what than you the efficient the most mix guests. to services, scores, like

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panel Wissink about more a have Jefferies. Steph headroom. It’s really Hi. broadly, but question from for I the it’s

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Michael?

Yeah.

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person. So, from here, and I to up I want joining by will of us wrap start for thanking all in you

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Stay again to joining us. well. soon. We hope you Stay safe. for see thanks So