The retailer reported net sales of $4.1bn (£2.9bn) for its three-months ended 30 January 2016, up 5.2 per cent from $3.9bn for the same period the year before, but net earnings of $180m, down from $255m.
For its full-year, the company reported net sales of $14.1bn, up 7.5 per cent from $13.1bn the year before, but net earnings of $600m, down from $720m.
Share price in the company, which closed at $52.70, dropped dramatically in after-hours trading, trading down six per cent at $49.50 shortly after the market closed.
The company has also seen more of its customers switch to digital recently, with net sales from its website up 11 per cent in the fourth quarter. Sales from the website were up 15 per cent for the full year as well.