Target store in New York, U.S., Monday, March 4, 2024.
Shelby Knowles | Bloomberg | Getty Images
Objective will double its bonuses for salaried workers this yr as the big-box retailer’s profits get well after a bumpy near-term two-year episode.
The Minneapolis-based retailer’s salaried employees receive an annual bonus based on Target’s performance and a qualifying amount designated as a part of their compensation. The retailer can pay 100% of the workers’ annual bonus amounts for the last financial yr, an organization spokesman said on Thursday. This means a rise of fifty% in comparison with the previous yr.
In an announcement, Target said the annual bonus payment is based on the retailer’s performance against sales and profit goals set firstly of the fiscal yr.
“Based on Target’s 2023 performance, including our team’s additional $2 billion in earnings growth that exceeded goals set at the beginning of the year, we are rewarding our team accordingly,” the corporate said in an announcement.
Target can pay annual money bonuses at the top of March. However, the quantity paid won’t be as high as it may very well be. It is capped at a maximum of 175% of every worker’s qualifying bonus amount.
The overwhelming majority of Target’s roughly 415,000 employees, including in stores and warehouses, is paid hourly and is not eligible for bonuses. Still, it offers bonuses to store and provide chain leaders, as well as many corporate employees. Top managers at Target have a unique bonus structure.
The first person to report the increased bonus payment was: Bloomberg.
Target has weathered a difficult nearly two-year period characterised by inventory problems, weaker discretionary spending, inflated supply chain costs and better levels of theft. During the vacation quarter, Target’s comparable sales fell for the third straight quarter, and its e-commerce segment sales also fell from the year-ago period.
The discounter said it expects sales challenges to proceed. For full-year 2024, Target expects comparable sales to stay flat and increase to 2%.
However, the corporate improved profits and margins as Target focused more on inventory and a few costs, such as freight, dropped. Target said it expects fiscal yr adjusted earnings per share of $8.60 to $9.60. The upper end of this range can be the very best adjusted earnings per share of $8.94 for the prior fiscal yr.
