A Target store in New York, USA, on Monday, March 4, 2024.
Shelby Knowles | Bloomberg | fake images
Aim will double its bonus payments to salaried employees this year, as the big-box retailer's profits recover from a near-rock bottom. two-year stretch.
The Minneapolis-based retailer's salaried employees receive an annual bonus, based on Target's performance and the eligible amount set as part of their compensation. Retailer will pay 100% of employees' eligible annual bonus amounts for the most recent fiscal year, a company spokesperson said Thursday. That's a 50% increase from the previous year.
In a statement, Target said the annual bonus payment is based on the retailer's performance relative to sales and profit goals set at the beginning of the fiscal year.
“Based on Target's performance in 2023, including the $2 billion in additional profit growth our team achieved that exceeded the goals we set at the beginning of the year, we are rewarding our team accordingly,” the statement said. of the company.
Target will pay the annual cash bonuses at the end of March. However, the amount paid will not be as high as it could be. It has a maximum of 175% of each employee's eligible bonus amount.
The vast majority of Target's approximately 415,000 employees, such as those in its stores and warehouses, are paid hourly and do not qualify for bonuses. However, it offers bonuses to store and supply chain leaders, along with many corporate employees. Target's top executives have a different bonus structure.
The bonus pay increase was first reported by Bloomberg.
Target has faced a challenging nearly two-year period marked by inventory issues, weaker discretionary spending, inflated supply chain costs and higher levels of theft. In the holiday quarter, Target's comparable sales declined for the third consecutive quarter and its e-commerce sales also fell compared to the same period a year ago.
The discounter said it expects sales challenges to continue. For full year 2024, Target said it anticipates comparable sales will remain flat and increase 2%.
But the company has improved its profits and margins as Target has focused more on inventory and some of its costs, such as freight, have fallen. For the fiscal year, Target said, it expects adjusted earnings per share to range between $8.60 and $9.60. The upper end of that range would exceed the adjusted earnings per share of $8.94 it reported for the previous fiscal year.
