Revenue during the quarter dropped 4.33 percent to $20,690 million from $21,626 million in the previous year period. Gross margin for the quarter contracted 95 basis points over the previous year period to 26.94 percent. Total expenses were 93.48 percent of quarterly revenues, up from 89.97 percent for the same period last year. That has resulted in a contraction of 351 basis points in operating margin to 6.52 percent.

Operating income for the quarter was $1,348 million, compared with $2,169 million in the previous year period.

"Our fourth quarter results reflect the impact of rapidly-changing consumer behavior, which drove very strong digital growth but unexpected softness in our stores," said Brian Cornell, chairman and chief executive officer of Target. "At our meeting with the financial community this morning, we will provide detail on the meaningful investments we're making in our business and financial model which will position Target for long-term, sustainable growth in this new era in retail. We will accelerate our investments in a smart network of physical and digital assets as well as our exclusive and differentiated assortment, including the launch of more than 12 new brands, representing more than $10 billion of our sales, over the next two years. In addition, we will invest in lower gross margins to ensure we are clearly and competitively priced every day. While the transition to this new model will present headwinds to our sales and profit performance in the short term, we are confident that these changes will best-position Target for continued success over the long term."

For the first-quarter 2017, the company expects diluted earnings per share to be in the range of $0.80 to $1. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.80 to $1. 

For fiscal year 2017, the company expects diluted earnings per share to be in the range of $3.80 to $4.20. The company expects diluted earnings per share to be in the range of $3.80 to $4.20 on adjusted basis.

The company has spent $1,473 million cash to meet investing activities during the year as against cash inflow of $508 million in the last year. It has incurred net capital expenditure of $1,501 million on net basis during the year, up 6.45 percent or $91 million from year ago.

The company has spent $5,497 million cash to carry out financing activities during the year as against cash outgo of $4,630 million in the last year period.

Cash and cash equivalents stood at $2,512 million as on Jan. 28, 2017, down 37.91 percent or $1,534 million from $4,046 million on Jan. 30, 2016.

Working capital turns negative
Working capital of Target Corporation has turned negative to $718 million on Jan. 28, 2017 from positive $1,508 million on Jan. 30, 2016. Current ratio was at 0.94 as on Jan. 28, 2017, down from 1.12 on Jan. 30, 2016.

Days inventory outstanding was almost stable at 25 days for the quarter, when compared with the last year period. At the same time, days payable outstanding was almost stable at 22 days for the quarter, when compared with the previous year period.