Target announces Q2 earnings
MINNEAPOLIS Target reported a 6% decrease in second-quarter earnings, compared with the year-ago period.
Net earnings for the quarter ended Aug. 1 were $594 million, compared with $634 million in the second quarter ended Aug. 2, 2008. Earnings per share in the second quarter decreased 3.9% to $0.79 from $0.82 in the same period a year ago. All earnings per share figures refer to diluted earnings per share.
Sales decreased 2.7% in the second quarter to $14.6 billion in 2009 from $15 billion in 2008, due to a 6.2% decline in comparable-store sales partially offset by the contribution from new store expansion. Retail segment earnings before interest expense and income taxes (EBIT) were $1.06 million in the second quarter of 2009, a 3.1% decrease from $1.10 million in 2008.
“Second-quarter earnings were stronger than expected due to very strong operating margin in our retail segment, and credit card segment performance in line with expectations,” said Gregg Steinhafel, chairman, president and CEO. “Looking forward to the second half of the year, we are focused on initiatives to drive incremental traffic and sales in our stores while maintaining disciplined execution in both of our business segments.”