Target Corporation’s annual net earnings almost doubled despite revenue decreasing due to lower comparable sales.

The discount department store and hypermarket operator saw net earnings increase 48.8 per cent to $4.14 billion while revenue fell 1.6 per cent to $107.4 billion last year. Sales slid 1.7 per cent to $105.8 billion, reflecting a 3.7 per cent decline in comparable sales.

“The revenue weakness reflects the broader economic trend of Americans cutting back on non-essential spending which has hit Target, with its discretionary offer, particularly hard,” GlobalData MD Neil Saunders said.

Saunders also noted that Target’s satisfaction score has been failing due to reducing the number of self-checkout, introduction of item limits, and a decrease in operation hours among others.

“Locking up more merchandise, including men’s essentials, is another example of deteriorating the attractiveness of going to stores. These are exactly the type of small details that, if repeated often enough, drives shoppers into the arms of competitors,” he said.

Fourth-quarter net earnings rose 57.8 per cent to $1.38 billion as revenue increased 1.7 per cent to $31.92 billion. Sales jumped 1.6 per cent to $31.47 billion while other revenue climbed 9.8 per cent to $452 million.

For this year, Target forecasts a modest increase in comparable sales in a range from flat to two per cent. The company estimates comparable sales to decline 3 per cent to 5 per cent in the first quarter.

“Looking ahead, we’ll continue to invest in the strengths and differentiators that have delivered strong financial performance over time,” said Target chairman and CEO Brian Cornell.

“We’ll also roll out fresh innovations, including our new Target Circle membership program, as part of our roadmap for growth aimed at meeting consumers where they are, reigniting sales, traffic and market share gains, and positioning Target for profitable growth in 2024 and beyond.”