Upper-mid-market big box retailer Target says things are going good.Here’s what it says about US retail:
As the company first reported in its sales release on November 3, 2011, Target’s sales in third quarter 2011 increased 5.4 per cent to $16.1 billion from $15.2 billion a year ago, due to a 4.3 per cent increase in comparable-store sales and the contribution from new stores. Segment earnings before interest expense and income taxes (EBIT) were $931 million in the third quarter of 2011, an increase of 14.1 per cent from $816 million in 2010.
Third quarter 2011 EBITDA and EBIT margin rates were 9.1 per cent and 5.8 per cent, respectively, compared with 8.8 per cent and 5.4 per cent in 2010. Third quarter gross margin rate declined to 30.5 per cent in 2011 from 30.6 per cent in 2010, reflecting the impact of the company’s integrated growth strategies partially offset by rate improvements within categories. The company’s third quarter selling, general and administrative (SG&A) expense rate improved to 21.4 per cent in 2011, compared with 21.8 per cent in 2010.
Target Corporation (NYSE: TGT) today reported net earnings of $555 million for the quarter ended October 29, 2011, compared with $535 million in the quarter ended October 30, 2010. Earnings per share in the third quarter increased 10.2 per cent to $0.82 from $0.74 in the same period a year ago. As previously disclosed, third quarter 2010 earnings per share included the benefit of approximately 6 cents related to favourable state income tax settlements. Third quarter 2011 results included expenses related to Target’s investments in its 2013 Canadian market entry, which reduced earnings per share by approximately 5 cents. Excluding those two items, adjusted earnings per share increased 28 per cent to $0.87 in third quarter 2011 from $0.68 in the same period a year ago. A reconciliation of non-GAAP financial measures to GAAP measures is provided in the tables attached to this press release. All earnings per share figures refer to diluted earnings per share.
“We’re very pleased with our third quarter financial results, which reflect strong performance in our U.S. Retail and U.S. Credit Card segments,” said Gregg Steinhafel, chairman, president, and chief executive officer of Target Corporation. “We’re confident that we have the right strategy and team in place to drive continued strong performance this holiday season and well into the future, allowing us to continue rewarding our shareholders while investing millions of dollars each week to support the many local communities where our guests and team members live, work and shop.”
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.