Target’s Earnings Secret: Wealthier Customers


[credit provider=”rondauphin via Flickr” url=””]

Target Corp. (NYSE: TGT) reported earnings this morning and the second quarter results were solid if not spectacular. Target posted EPS of $1.03 vs. expectations of $0.97. Net profit rose from $679 million in the same period a year ago to $704 million. Revenues for the quarter totaled $16.24 billion compared with an expected $16.17 billion.The store offered upgraded guidance for the third quarter and the full year. Third-quarter EPS is forecast at $0.70-$0.75 and full-year EPS is set at $4.15-$4.30. Analysts had estimated third-quarter EPS at $0.71 and full-year EPS at $4.13.

Wal-Mart Stores Inc. (NYSE: WMT) reported earnings yesterday, and US same-store sales were down by nearly -1%. Target’s same-store sales grew 3.9% in the quarter. Same-store sales at Costco Wholesale Corp. (NASDAQ: COST) rose 5% in July, excluding gasoline sales. Yesterday Home Depot Inc. (NYSE: HD) reported second-quarter same-store sales rose 3.5% and Lowe’s Cos. (NYSE: LOW), like Walmart, reported same-store sales down by -0.3%.

Click here to read more at 24/7 Wall Street >