Target Profit Rises as Annual Revenue Crosses $100 Billion |

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reported strong sales gains in the holiday quarter, capping off a two-year pandemic run during which the retailer grew its business by nearly $30 billion in revenue.

Comparable sales, which include sales from stores or digital channels operating for at least 12 months, rose 8.9% in the quarter ended Jan. 29 from a year prior, the company said. Digital sales increased 9.2%.

The results came after its big-box retail peer

Walmart Inc.

recorded rising sales at its U.S. stores open at least a year and stronger profit in the holiday period.

For the full year, Target’s revenue hit $106 billion, compared with $77.1 billion for the year ended Feb. 1, 2020, before the pandemic upended the global economy and consumer buying patterns.

Target has benefited from a surge in demand for home delivery and its service that allows customers to buy online and pick up in-store. Comparable sales during the most recent quarter rose by double-digit percentages across its five main categories of goods including food, apparel and home, the company said.

Overall profit rose nearly 12% to $1.54 billion, or $3.21 a share, in the quarter compared with the same period last year. Strong revenue growth helped offset higher supply-chain costs and spending on wages. Excluding one-time items, Target posted earnings of $3.19 a share, ahead of the $2.85 a share expected by analysts, according to

FactSet.

On Monday, Target said it plans to raise wages this year, offering hourly workers a starting wage of $15 to $24 an hour.

For the current fiscal year, Target expects a low- to mid-single-digit percentage increase in revenue from 2021 and adjusted earnings per share to rise by a high-single-digit percentage. For the most recent year, adjusted earnings per share hit $13.56.

The company will hold an investor day and conference call to discuss earnings Tuesday morning.

The Covid pandemic has strained global supply chains, causing freight backlogs that have driven up costs. Now, some companies are looking for longer-term solutions to prepare for future supply-chain crises, even if those strategies come at a high cost. Photo Illustration: Jacob Reynolds