Executive Summary

• Target reported 4Q15 revenues of $21.6 billion, down 0.6% from $21.8 billion in the year-ago quarter and in line with consensus estimates. Positive comps were offset by the impact of the sale of the pharmacy business to CVS Health.
• Sales growth of 34% in the digital channel contributed 1.2% of the 1.9% total comp increase for the quarter. Adjusted EPS was $1.52, a 2.1% increase year over year and in line with guidance, but below the consensus estimate of $1.54.
• The company guided for a 1.5%–2.5% increase in comp sales in 2016, to be offset by a 4.5%–5.0% sales decline from divestitures. It guided for EPS of $5.20–$5.40 for the full year and for EPS of $1.15–$1.25 for 1Q16.