Big box retailer Target posted better than expected first quarter results this morning, as same-store sales rallied by their highest pace in more than six years.
Target said it earned $697 million, or $1.04 per share, on top line results of $16.9 billion. Total sales improved 6.1 per cent year-on-year.
Shares in the Minneapolis, Minn., based retailer were up nearly three per cent in pre-market trading, before giving up some of their gains.
“We’re very pleased with our first quarter earnings, which benefited from better-than-expected sales,” Target Chief Executive Gregg Steinhafel said. “While our outlook for the remainder of 2012 reflects continued economic uncertainty, we are confident in our strategy.”
Same-store sales in the U.S. gained 5.3 per cent during the quarter as the average price per transaction increased 3.2 per cent and transaction volume improved 2.0 per cent.
The retailer also readied to enter the Canadian market — taking a loss of $55 million.