US retailer Target Corp. booked a “strong” third quarter performance today (17 November) but said it remains “cautious” about the fourth quarter.
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The company reported net earnings of US$436m for the period ended 31 October compared with $369m in the prior year.
Sales increased 1.4% to reach $14.8bn in 2009 due to the contribution from new store expansion, partially offset by a 1.6% decline in comparable-store sales.
Retail segment earnings before interest expense and income taxes (EBIT) were $791m in the quarter, a 2.4% increase from 2008.
“We’re very pleased with our third quarter earnings performance, which reflects strong execution and a commitment to continued innovation by teams throughout the company,” said Gregg Steinhafel, chairman, president and CEO.
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By GlobalDataHe added: “In light of the current and projected economic environment and expectations for a highly promotional holiday season, Target remains cautious about fourth quarter performance and is planning conservatively in both business segments.”
Last month Target announced plans to reorganise its marketing department, with the loss of approximately 85 jobs. The company said the move was part of its “normal business practices”.
