Goal Corp. announced that revenue grew while comparable sales declined in its fiscal fourth quarter ended Feb. 3, 2024. Meanwhile, revenue and comparable sales each declined over the total 2023 fiscal 12 months.
Those results exceeded Goal’s expectations, the retailer said in a March 5 press release. “Our team’s efforts modified the momentum of our business, further improving our sales and traffic trends within the fourth quarter while driving profitability well ahead of expectations,” CEO Brian Cornell said in a written statement.
“Throughout the season, guests responded to newness, value, and the inspiration and ease of our in-store and digital shopping experience. Looking ahead, we’ll proceed to speculate within the strengths and differentiators which have delivered strong financial performance over time,” he continued.
Goal is No. 5 within the Top 1000. The database is Digital Commerce 360’s rating of North America’s online retailers by web sales. Digital Commerce 360 categorizes Goal as a mass merchant.
How much does Goal make in online sales?
Fourth-quarter revenue grew 1.7% to $31.92 billion, from $31.39 billion within the year-ago period. That was driven by a 1.6% growth in sales and a 9.8% increase in other revenue, Goal said.
Total comparable sales declined 4.4% over the identical period. Comparable store sales declined 5.4%, while online sales fared relatively higher, down 0.7%. Online sales were boosted by strong same-day services including in-store pickup, Drive Up, and Shipt, Goal said. They made up greater than 10% of total sales and grew 13.6% within the quarter. Drive Up sales led the expansion, it said. Online sales made up 21.3% of total sales, a slight increase from 20.8% in Q4 2022.
Although online sales declined 12 months over 12 months, they improved over the third quarter, Goal said. In Q3, online comparable sales had declined 6% 12 months over 12 months.
Operating income grew most importantly within the quarter. It increased 60.9% to $1.87 billion.
Meanwhile, full fiscal 2023 revenue declined 1.6% from 2022 levels to $107.41 billion. Total comparable sales declined 3.7% within the period, and digital comparable sales decreased 4.8%. Online sales accounted for 18.3% of total sales for the 12 months, down from 18.6% in 2022.
For the total 12 months, operating income grew 48.3% to $5.71 billion.
Goal launches a paid membership
The retailer announced its recent paid membership program, Goal Circle 360.
“We’ll also roll out fresh innovations, including our recent Goal Circle membership program, as a part of our roadmap for growth geared toward meeting consumers where they’re, reigniting sales, traffic and market share gains, and positioning Goal for profitable growth in 2024 and beyond,” Cornell said.
Goal Circle 360 will launch on April 7 at a reduced rate of $49 per 12 months through May 18, when the value will increase to $99. Membership offers unlimited same-day delivery for orders of $35 or more. Delivery can take as little as an hour, Goal said. Members may even receive free two-day shipping on Goal.com orders. The retailer said members may even get access to other perks like partnerships in the long run. Its Goal Red Card might be rebranded because the Goal Circle Card, with 5% off purchases.
Goal Circle will proceed on because the free tier of the membership program.
The brand new membership offering puts Goal further in direct competition with Amazon and Walmart, which each offer similar programs.
“It’s comprehensible why Goal desires to have a paid loyalty scheme; nevertheless, as currently conceived, this system doesn’t seem all that compelling,” said Neil Saunders, managing director at retail evaluation firm Global Data. “It’ll probably appeal to those that use Goal extensively and get a number of deliveries, but beyond that, it doesn’t stack up thoroughly against rivals like Walmart and particularly Amazon.”
Saunders framed the announcement as a start line for Goal — and one that can have to evolve.
“To be fair, Goal has to begin somewhere, and it is going to probably add more advantages over time, nevertheless it really must deepen the worth consumers get at a time when most households have subscription fatigue,” Saunders added. “The more positive aspect of this system is that it is going to allow Goal to deepen its efforts within the retail media space.”
Goal holiday results
Goal’s Black Friday and Cyber Monday sales “outperformed overall trends,” the retailer said of the height shopping days. A reasonable assortment of toys and holiday meals were most important draws for consumers, the retailer said without sharing more.
Goal earnings
For the fiscal fourth quarter ended Feb. 3, 2024, Goal Corp. reported:
- Total revenue grew 1.7% to $31.92 billion, from $31.39 billion within the year-ago period.
- Total comparable sales declined 4.4%, and digital comparable sales declined 0.7%.
- Goal online sales accounted for 21.3% of total sales.
For the 12 months ended Feb. 3, 2024, Goal reported:
- Total revenue declined 1.6% from 2022 levels to $107.41 billion.
- Total comparable sales declined 3.7% within the period, and digital comparable sales decreased 4.8%.
- Goal online sales made up 18.3% of sales.
Percentage changes may not align exactly with dollar figures resulting from rounding. Check back for more earnings reports. Here’s last quarter’s update on Goal.
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