US retailer Target Corp. has booked a jump in third-quarter profits, which benefited from higher sales and one-off gains.
In a filing yesterday (15 November) Target said it had earned US$637m, or $0.96 per share, in the third quarter ended 27 October. In the comparable period of last year, Target booked earnings of $555m, or $0.82 a share.
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The company’s bottom line was boosted by a gain from the group’s pending sale of credit card receivables. Excluding this, earnings were slightly down on last year at $0.81 a share.
Third-quarter sales rose by 3.4% to $16.6bn, while same-store sales were up 2.9%. The company has driven revenue gains by opening more stores and building loyalty through its promotional programme, which offers Target card holders a 5% discount. However, these initiatives have weighed on margins, which slipped 0.2 points to 30.3% of sales in the quarter.
