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Target Beats by Nickel; EPS Boosted by Credit Card Division

Target earnings topped Wall Street’s estimates, helped by strength in its credit card business, which offset weak sales at its retail operations.

Target’s [TGT  50.78   0.44  (+0.87%)   ] net income for the quarter ended April 30 rose 9.8 percent to $689 million, or 99 cents a share, from $671 million, or 90 cents a share in the year ago period.

Analysts surveyed by Thomson Financial expected the company to earn 94 cents a share in the latest period.

Total revenue rose 2.2 percent to $15.94 billion from $15.59 billion in the year ago period.

Same-store sales, which measures sales at all stores open at least 12 months, rose 2.0 percent

Target CEO Gregg Steinhafel said Target’s PFresh remodel program, which puts a focus on selling fresh grocery items, and a 5 percent REDcard Rewards loyalty program are helping to drive traffic and sales. However, he said consumers remain “cautious in their spending.””

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