Home / Knowledge / News / Target CEO pleased with Q2 financial results
Target CEO pleased with Q2 financial results
18
Aug '11
Target Corporation reported net earnings of $704 million for the quarter ended July 30, 2011, compared with $679 million in the quarter ended July 31, 2010. Earnings per share in the second quarter increased 11.5 percent to $1.03 from $0.92 in the same period a year ago. All earnings per share figures refer to diluted earnings per share.

"We're very pleased with our second quarter financial results, which benefited from an acceleration in the pace of our comparable-store sales growth," said Gregg Steinhafel, chairman, president, and chief executive officer of Target Corporation. "We continue to focus on strong execution of our strategy, preparing Target to perform well in a variety of economic environments."


Earnings Guidance

The company currently expects third quarter diluted EPS of 70 to 75 cents, and full-year 2011 diluted EPS of $4.15 to $4.30.

U.S. Retail Segment Results

As the company first reported in its sales release on August 4, 2011, Target's sales increased 5.1 percent in the second quarter to $15.9 billion in 2011 from $15.1 billion in 2010, due to a 3.9 percent increase in comparable-store sales and the contribution from new stores. Segment earnings before interest expense and income taxes (EBIT) were $1,147 million in the second quarter of 2011, an increase of 4.6 percent from $1,096 million in 2010.

Second quarter 2011 EBITDA and EBIT margin rates were 10.3 percent and 7.2 percent, respectively, compared with 10.5 percent and 7.2 percent in 2010. Second quarter gross margin rate declined to 31.6 percent in 2011 from 32.0 percent in 2010, due to the impact of the company's integrated growth strategies. The company's second quarter selling, general and administrative (SG&A) expense rate improved to 21.3 percent in 2011, compared with 21.5 percent in 2010.

U.S. Credit Card Segment Results

Second quarter average receivables decreased 12.4 percent to $6.2 billion in 2011 from $7.1 billion in 2010. Average receivables directly funded by Target decreased 19 percent in the second quarter to $2.4 billion from $3.0 billion in 2010.

Second quarter bad debt expense was $15 million in 2011, down from $138 million in 2010, driven by improved trends in key measures of risk. Segment profit for the quarter was $171 million, compared with $149 million in second quarter 2010. Annualized segment pre-tax return on invested capital was 28.5 percent in second quarter 2011, compared with 20.2 percent in 2010.

Canadian Segment Results

Consistent with prior guidance, second quarter 2011 EBIT was $(36) million due to start-up expenses and depreciation related to the company's expected market entry in 2013.

Interest Expense and Taxes

Net interest expense for the quarter was $191 million, including $10 million of interest on capitalized leases related to Target's Canadian market entry. Net interest expense was$185 million in second quarter 2010.


Must ReadView All

Apparel/Garments | On 25th Jun 2017

Half of 7,000 new apparel online each day target women

Adobe has released its first Digital Price Index for apparels,...

Textiles | On 25th Jun 2017

First Insight, Chico's FAS enter partnership

First Insight, a technology company transforming how retailers make...

Apparel/Garments | On 25th Jun 2017

Expand changing use of social and web resources

With over 400 million impressions to date and web traffic of over two ...

Interviews View All

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Manfred Mentges
Sedo Treepoint GmbH

We see a higher demand in colour management systems, as customers see big...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search