“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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