Thread: Target's 4Q profit rises 53.7%

Target's 4Q profit rises 53.7%

Posted 22m ago
By Anne D'Innocenzio, AP Retail Writer

NEW YORK — Lean inventory and stronger-than-expected holiday sales helped Target's fourth-quarter profit rise 53.7%, and the company said it expects to pick up market share this year as it rolls out sweeping merchandising initiatives.

The second-largest U.S. discount retailer said Tuesday it earned $936 million, or $1.24 a share, in the quarter ended Jan. 30.

Revenue rose 3.2% to $20.18 billion. Sales at stores open at least a year rose 0.6%. In comparison, Wal-Mart saw its total sales at its U.S. Walmart stores fall for the first time, as price-cutting competitors lure away bargain-hunters

Results beat estimates of analysts surveyed by Thomson Reuters, who expected $1.16 a share on revenue of $20.15 billion.

In a statement, Gregg Steinhafel, Target's chairman, president and CEO, said he expects the company will be able to take market share and see increases in sales of discretionary items as it benefits from new merchandising initiatives as well as a continued "modest" economic recovery.

Target (TGT), which carved a niche as a cheap chic discounter, took a hit when the economy soured because about 40% of its sales come from essentials like groceries and wellness as opposed to 60% at Wal-Mart Stores (WMT), the world's largest retailer, which had seen a steady flow of new customers trading down from upscale stores.

But during the fourth quarter, there was a reversal of fortunes, with Wal-Mart reporting its third consecutive decline in sales at stores open at least a year. Wal-Mart's key sales measure dipped 1.6% for the fourth quarter, lagging behind Target's holiday performance.

To turn around sales, Target has emphasized its low prices in advertising and expanded its food offerings. The company is also rolling out a new store format that will begin to be implemented in April. It will feature spruced up home furnishings offerings, larger grocery sections, and feature better video games displays.

Like Walmart, Target also has plans to open smaller stores in urban markets.

http://www.usatoday.com/money/companies ... ings_N.htm

They haven't gotten one dime of my money since the early 90's... and they never will. When they started opening "super" centers in Canada everyone thought they were great, but their corporate policies turned me off from the get go.

I personally saw them threaten a Veteran selling poppies (a huge symbol for Remembrance day, Canada's equivalent of Veterans Day) when he was selling them in front of their store. I told the Manager I will never grace your store again... never have there or here in the US.

Well, at least you guys still honor the end of WWI properly. The kids today don't know about "poppy" day in school. We would sell paper scented poppies and all the proceeds went to the veterans hospital.

"Target's 4Q profit rises 53.7%"

and

"Sears profit more than doubles in 4Q"

http://www.alipac.us/ftopict-189164.html

would seem to indicate that the economy was improving in the 4th quarter.

Which should be good news to everyone.