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Adjusted EPS at Target Corp soars 20.6% in Q2FY16
20 Aug '15
3 min read
Adjusted earnings per share (EPS) from continuing operations for the three months to August 1, 2015 soared 20.6 per cent year over year to $1.22 at NYSE listed retailer Target Corporation.
“GAAP EPS from continuing operations were $1.21, compared with $0.61 in second quarter 2014,” a press release from Target Corp informed.
Second quarter of fiscal 2016 sales increased 2.8 per cent to $17.4 billion from $17.0 billion in the prior fiscal second quarter. Comparable sales combined with sales from new stores grew 2.4 per cent.
Target added that its digital channel sales surged 30 per cent from a fiscal ago period and contributed 0.6 percentage points to comparable sales growth.
Segment earnings before interest expense and income taxes (EBIT) were $1,350 million in the reporting quarter 2015, up 17.5 per cent from $1,149 million in the same quarter of previous fiscal.
EBITDA and EBIT margin rates were 10.9 per cent and 7.7 per cent, respectively in the quarter under review compared with 9.9 per cent and 6.8 per cent.
Second quarter of fiscal 2016 gross margin rate stood at 30.9 per cent as against 30.4 per cent, reflecting the benefit of annualising heightened promotional markdowns in second quarter of fiscal 2015.
SG&A expense rate amounted to 19.9 per cent in the reporting period vis-à-vis 20.5 per cent in the second quarter of fiscal 2015, reflecting ongoing cost savings initiatives and expense timing.
The Company's second quarter of fiscal 2016 net interest expense was $148 million, compared with $433 million last fiscal's corresponding quarter.
Last year's second interest expense included a $285 million charge related to the early retirement of debt.
In the three months to August 1, 2015, the Company repurchased 8.2 million shares of common stock at an average price of $81.94, for a total investment of $675 million.
The retailer also paid dividends of $331 million during the quarter, an increase of 22 per cent from $272 million in the same quarter of earlier fiscal.
In total, the Company returned $1,006 million to shareholders in the second quarter of fiscal 2016, representing more than 133 per cent of net income.
Year-to-date, the company has repurchased 15.2 million shares at an average price of $81.41, for a total investment of $1.2 billion.
Under the current $10 billion share repurchase program, Target has repurchased 65.1 million shares of common stock at an average price of $67.19, for a total investment of approximately $4.4 billion.
In the third quarter of fiscal 2016, Target expects adjusted EPS of $0.79 to $0.89 compared with $0.79 in third quarter of fiscal 2015.
It has also hiked its full fiscal 2016 adjusted EPS guidance to $4.60 to $4.75 as against prior guidance of $4.50 to $4.65. (AR)
“GAAP EPS from continuing operations were $1.21, compared with $0.61 in second quarter 2014,” a press release from Target Corp informed.
Second quarter of fiscal 2016 sales increased 2.8 per cent to $17.4 billion from $17.0 billion in the prior fiscal second quarter. Comparable sales combined with sales from new stores grew 2.4 per cent.
Target added that its digital channel sales surged 30 per cent from a fiscal ago period and contributed 0.6 percentage points to comparable sales growth.
Segment earnings before interest expense and income taxes (EBIT) were $1,350 million in the reporting quarter 2015, up 17.5 per cent from $1,149 million in the same quarter of previous fiscal.
EBITDA and EBIT margin rates were 10.9 per cent and 7.7 per cent, respectively in the quarter under review compared with 9.9 per cent and 6.8 per cent.
Second quarter of fiscal 2016 gross margin rate stood at 30.9 per cent as against 30.4 per cent, reflecting the benefit of annualising heightened promotional markdowns in second quarter of fiscal 2015.
SG&A expense rate amounted to 19.9 per cent in the reporting period vis-à-vis 20.5 per cent in the second quarter of fiscal 2015, reflecting ongoing cost savings initiatives and expense timing.
The Company's second quarter of fiscal 2016 net interest expense was $148 million, compared with $433 million last fiscal's corresponding quarter.
Last year's second interest expense included a $285 million charge related to the early retirement of debt.
In the three months to August 1, 2015, the Company repurchased 8.2 million shares of common stock at an average price of $81.94, for a total investment of $675 million.
The retailer also paid dividends of $331 million during the quarter, an increase of 22 per cent from $272 million in the same quarter of earlier fiscal.
In total, the Company returned $1,006 million to shareholders in the second quarter of fiscal 2016, representing more than 133 per cent of net income.
Year-to-date, the company has repurchased 15.2 million shares at an average price of $81.41, for a total investment of $1.2 billion.
Under the current $10 billion share repurchase program, Target has repurchased 65.1 million shares of common stock at an average price of $67.19, for a total investment of approximately $4.4 billion.
In the third quarter of fiscal 2016, Target expects adjusted EPS of $0.79 to $0.89 compared with $0.79 in third quarter of fiscal 2015.
It has also hiked its full fiscal 2016 adjusted EPS guidance to $4.60 to $4.75 as against prior guidance of $4.50 to $4.65. (AR)
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