Wednesday September 03, 2014

subscription options


Print Edition»

  • Includes free
    digital edition
  • Digital Edition»

  • Print format with
    enhanced features!
  • QUESTION OF THE WEEK

    • What do you consider to be the 2013 Story of the Year?
    • B.C. election
    • 36%
    • TRU law school
    • 4%
    • Proposed Ajax mine
    • 43%
    • Jack Shippobotham death
    • 3%
    • Starving horses seized
    • 11%
    • Red Lake cold case
    • 3%
    • Total Votes: 1070





    Home »  News »  Business

    Target upbeat about holiday season as 3Q profit climbs 15 per cent, helped by credit card sale


    A Feb. 20, 2012 photo, shows flat screen televisions at a Target store in Methuen, Mass. THE CANADIAN PRESS/AP, Elise Amendola

    MINNEAPOLIS - Target Corp. is optimistic heading into the critical holiday shopping season after a strong third quarter.

    The holiday shopping season can make up 40 per cent of a retailer's annual revenue and Target expects this year to be "highly competitive and promotional," said Kathryn Tesija, executive vice-president of merchandising.

    "For the holiday season, consumers anticipate spending slightly more than last year, but indicate they'll be focused on value, pricing and promotions," she said on a call with analysts.

    The big-box retailer, known for its cheap but trendy merchandise, on Thursday reminded investors of the initiatives it's betting on for growth in the coming weeks, including a holiday collection partnership with luxury department store Neiman Marcus and a new online price matching program.

    For the fourth quarter, which ends in January, the company anticipates adjusted earnings of $1.64 to $1.74 per share. Analysts predict $1.51 per share.

    Target's stock added $1.41, or 2.3 per cent, to $62.49 in afternoon trading Thursday.

    Target's upbeat view contrasts with rival Wal-Mart Stores Inc. The world's biggest retailer on Thursday issued a fourth-quarter profit outlook that came in below Wall Street expectations.

    For the three months ended Oct. 27, Target earned $637 million, or 96 cents per share. That's up from $555 million, or 82 cents per share, a year earlier.

    The current quarter's performance included a 15-cent gain tied to the retailer's sale of its consumer credit-card business to TD Bank Group.

    Target, which had been looking for a buyer for nearly two years, announced the deal last month.

    Removing certain items, the chain's earnings were 90 cents per share. Analysts expected 78 cents per share, according to a FactSet poll.

    Revenue climbed 3 per cent to $16.6 billion from $16.05 billion, but missed Wall Street's $16.91 billion forecast.

    Revenue at stores open at least a year, a key retail metric, rose 2.9 per cent, slower than last year's 4.3 per cent increase. This figure excludes results from stores recently opened or closed.

    The company said customers spent more on each visit, and cited strong sales of food, health and beauty products, and back-to-school items.


    Comments


    NOTE: To post a comment in the new commenting system you must have an account with at least one of the following services: Disqus, Facebook, Twitter, Yahoo, OpenID. You may then login using your account credentials for that service. If you do not already have an account you may register a new profile with Disqus by first clicking the "Post as" button and then the link: "Don't have one? Register a new profile".

    The Kamloops Daily News welcomes your opinions and comments. We do not allow personal attacks, offensive language or unsubstantiated allegations. We reserve the right to edit comments for length, style, legality and taste and reproduce them in print, electronic or otherwise. For further information, please contact the editor or publisher, or see our Terms and Conditions.

    blog comments powered by Disqus



    Sitemap / RSS   Glacier Community Media: www.glaciermedia.ca    © Copyright 2014 Glacier Community Media | User Agreement & Privacy Policy

    LOG IN



    Lost your password?