US retailer Target Corp. lifted its full-year profit guidance today (15 August) on the back of strong second-quarter results.
Target raised its earnings per share forecast by five cents a share to a guidance range of $4.65 to $4.85. GAAP EPS, which reflects the impact of start-up costs linked to the group’s entry into Canada, is expected to total in the region of $4.20 to $4.40.
In the second quarter of 2012, Target said adjusted earnings per share rose 4.6% in the three months to 28 July, climbing to US$1.12 per share. Net earnings remained flat at $704m, the company added.
Total revenue increased by 3.3% in the quarter, rising to $16.78bn. A 3.5% increase in retail sales more than offset a 5.1% drop in credit card revenue, the company revealed.
In the US, Target has focused its growth strategy on the development of an urban format and merchandising initiatives – including vastly expanding its food offer. In the longer term the group has also signaled its intention to expand into new markets and is currently establishing retail operations in Canada.