Target predicted ho-hum holiday sales – and that's what happened. But profits came in better than forecast.

Its comparable sales — a closely watched metric that includes online sales and sales at stores open at least a year — slid by 4.4% in November, December and January, its third consecutive quarterly decline, the Minneapolis-based retailer reported this morning. And executives said they are not likely to get much better this spring.

Target's surprisingly strong profits were thanks in part to more than $500 million in cost-cutting measures last year as well as lower freight and fulfillment costs. It also had fewer markdowns than the year before when it dealt with a glut of inventory that ate into profit margins.

Net income jumped 58% to $1.4 billion in the fourth quarter. And earnings per share of $2.98 was better than analysts' expectations of $2.41.

Target is hoping to see a turnaround in sales later in the year. It has forecast sales to be flat to up 2% for the coming year.

CEO Brian Cornell and other top Target executives will take the stage at annual investors' meeting in New York City Tuesday morning where they will lay out more details about the company's financial targets and strategic initiatives for the coming year.

"Looking ahead, we'll continue to invest in the strengths and differentiators that have delivered strong financial performance over time," Cornell said in a statement. "We'll also roll out fresh innovations, including our new Target Circle membership program, as part of our roadmap for growth aimed at meeting consumers where they are, reigniting sales, traffic and market share gains, and positioning Target for profitable growth in 2024 and beyond."

Target leaders have been saying for months that consumers have been pulling back as their budgets have become more constrained from higher prices for basics like food. While inflation has eased, many prices remain higher than they were a couple years ago. In addition, they point to higher interest rates, increased credit card debt and the return of student loan payments as pinching their customers' wallets.

National retailers have reported mixed results for the holidays. Walmart had a strong season on top of sales growth throughout the year. Others, such as Macy's, did not fare as well.

Target's results in the fourth quarter and for the full year benefited from an additional week, which is factored out when calculating comparable sales. With that additional week, Target's overall revenue in the quarter rose 1.7% to $31.9 billion.

Over the full year, Target's revenue declined 1.6% to $109.1 billion.

In order to better appeal to budget-conscious shoppers, Target recently started rolling out a new private-label brand called Dealworthy, which offers prices as low as $1 in various product categories. At the other end of the spectrum, it announced its next limited-time design partnership that launches later this month will be with Diane von Furstenberg.

This story is developing and will be updated.