Target

[dmx10101]

Target's profit tumbles

Retailer says weak economy hurt its retail and credit card segments.

By Ben Rooney, CNNMoney.com staff writer
Last Updated: November 17, 2008: 1:17 PM ET

NEW YORK (CNNMoney.com) -- Target Corp. reported a nearly 24% decline in third-quarter net income Monday as the weak economy continues to weigh on consumer spending.

The Minneapolis-based retailer reported net income in the three months ended Nov. 1 of $369 million, down 23.6% from earnings of $483 million a year earlier.

Earnings per share fell nearly 14% to 49 cents from 56 cents in the same quarter a year ago.

Revenue in the quarter rose 1.7% to $14.59 billion as new-store expansion helped offset declining same-store sales.

Analysts had expected Target (TGT, Fortune 500) to report earnings of 49 cents per share on revenue of $15.24 billion, according to a survey by Briefing.com.

"Our third-quarter financial results reflect the significant macroeconomic challenges facing our retail and credit card segments," said Gregg Steinhafel, Target's president and chief executive, in a statement.

Same-store sales, or sales at stores open at least a year, declined 3.3% in the quarter.

Profit from Target's credit card segment declined 83% to $35 million from $202 million last year.

Looking ahead, Target said the outlook for profit growth was difficult to gauge since same-store sales growth has been volatile this year.

However, fourth-quarter profit could vary between 90 cents per share to $1 per share if same-store sales decline in the "mid-single digit" percentage range, according to Doug Scovanner, Target's chief financial officer. Wall Street analysts are expecting fourth-quarter earnings of $1.22 per share.

Target has struggled to compete with Wal-Mart Stores (WMT, Fortune 500), the world's largest retailer, as wary consumers shy away from discretionary purchases amid rising unemployment and the weak economy.

"Right now the consumer is more than hesitant," Steinhafel said. "We, like other retailers, suffer from an inability to motivate consumers to come into our stores."

The results come ahead of the all-important holiday sales period which can account for half of the retail industry's profit for the year.

Steinhafel said he expects holiday season competition to be "equally, if not more, aggressive" from previous years due to a "slightly higher sense of desperation by some of the other retailers."

That said, he expects Target to meet Wal-Mart's prices "on all like and identical items."

Meanwhile, the company also said it has temporarily suspended share buyback programs and will limit capital spending. In the third quarter, Target repurchased about 2.5 million shares of its common stock at approximately $55 a share.

"The current environment and our financial outlook have naturally reduced our appetite for investment in our business," Scovanner said in a statement. He added that the company has reduced planned capital expenditures for next year by $1 billion.

"Overall, we believe these related decisions will help to protect our liquidity and strong debt ratings as we continue to operate in a very challenging retail and credit environment," Scovanner said.

Target's financial results came after the government reported last week that retail sales in October suffered their worst decline on record.  

First Published: November 17, 2008: 8:42 AM ET
 
Find this article at:
http://money.cnn.com/2008/11/17/news/companies/target_earnings/index.htm?postversion=2008111708

[EddieJ1984]

This is a target in cherry hill, new jersey
It got renovated (I'd guess it was built in the mid 90s), it was a target greatland, now just target, used to have 2 entrances, now just has 1. The shot shows the left side of it, before tha target greatland sign was on the portion on the right(It was taken with my cell phone, my cam has to get fixed)

[videogamer75]

Turnersville, NJ's Target also remodeled to that design in 2006. Mt. Laurel's Target is still a Greatland, right?

[EddieJ1984]

Dunno, if im ever in jersey its usually cherry hill.

[videogamer75]

Ok. Ive never been to Cherry Hill, but I'd like to go there to go take pics of the old IHOP and the old J.M. Fields

[Mobil]

Originally posted by videogamer75
Ok. Ive never been to Cherry Hill, but I'd like to go there to go take pics of the old IHOP and the old J.M. Fields

The J.M. Fields is now a T.J. Maxx, and the Pantry Pride is a Pathmark.

[videogamer75]

Here's a vintage Target interior from the 1960's, as seen on Target.com.

[videogamer75]

What the first Target in Rosevill Minnesota looked like! Also from their Website

[CTAmeshopper]

I like Target it's nice and clean inside, plus there's something special about the way it is laid out. They've created the layout as such so you could see all the way to the back. This is accomplished by reducing the height of shelves so they don't block the ceiling. This creates an optical illusion of a lighted ceiling that seems endless. It makes the store look larger. It reminds me of Caldor which also used to do this on their later stores. I just like seeing a seemingly continuous lighted ceiling when you walk right in. :yup:

Maybe I'm odd but I like things like that.

I also like the fact they got a cafe' inside it's very convenient and the food is good. Pretty cool store.

[nims57]

The Target in Abington, PA which is a former Sears.

[nims57]

Most multi-level Targets are equipped with a Vermaport cart escalator.

[Zayre88]

Target to Cut 9% of Headquarters Jobs, Shut Distribution Center

Jan. 27 (Bloomberg) -- Target Corp., the second-biggest U.S. discount retailer, plans to eliminate 9 percent of the jobs at its headquarters and close a distribution center to reduce costs in the shrinking economy.

The company will slash 600 existing jobs and 400 open positions, mainly in its hometown of Minneapolis. It will also close its Little Rock, Arkansas, distribution center, which employs 500, later this year, Target said today in a statement.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aQgfIYMrhibQ&refer=home

[nims57]

I hate Target

[Zayre88]

Originally posted by nims57
I hate Target

You can always go to the Target bashing thread:

http://www.amesfanclub.com/forum/viewthread.php?tid=1360

[XDeSuEhTX]

We don't have Target in my town. Though it has been rumored for a decade that they were coming soon... Guess not.

Actually, there are only five Targets in this entire state. Each in the only five larger cities in the state than the one I live in. But I've been to one of them, I liked it from what I can remember.

[wwefan101]

millbury ma

[Marc82]

Originally posted by nims57
The Target in Abington, PA which is a former Sears.

That is an awesome photo! It looks like a Winter Wonderland. Cool.

[standa]

Originally posted by nims57
The Target in Abington, PA which is a former Sears.

Is this Target in a mall?

[store215]

Originally posted by standa

Originally posted by nims57
The Target in Abington, PA which is a former Sears.

Is this Target in a mall?

It used to be a "mini-mall" of sorts, but was pretty much dying after the early 90's when Sears moved to a new mega-mall a few miles away. The Target is fairly new, opening around 2002 I would say. One of my relatives used to have a jewlery store in this mall. Target is the only "interior" store left taking up the entire 2nd and (3rd?) floor of the former mall. There are some other stores on the first level but they all have outside entrances.

I've been to this Target and besides the cool cart esclator, I was not impressed. This store is in a lower-middle class area and doesn't seem to be well maintained or stocked. It is never real busy either whenever I visit (There is a new Walmart supercenter a few miles away, and an older Kmart down the street).

[d_fife]

Originally posted by XDeSuEhTX
We don't have Target in my town. Though it has been rumored for a decade that they were coming soon... Guess not.

Actually, there are only five Targets in this entire state. Each in the only five larger cities in the state than the one I live in. But I've been to one of them, I liked it from what I can remember.

there isn't one in Parkersburg.

[wwefan101]

i rember 1 target in worcster that i been to  what a mess  then ther was a stabing in the store like a day after i went to it  i wont ever go back to it   i like the millburyma one the best  cause ucango the moivesand evey thing its like 2 big  malls in one plazza

[EddieJ1984]

Here's a picture of the target closest to me in northeast philadelphia, that is opening march 8th!


Up until labor day 2007, there was the amc orleans 8, a bunch of stores (Jo-Ann Fabrics, pep boys petsmart, a closed down hollywood bistro), they tore down the petsmart and pepboys and rebuilt them, everything else is gone, here is a picture of the same spot frm September 2007.

[Marc82]

New Southington Target. Opened October 08. Located off West Street (Route 229) on Executive BLVD South near The Hartford Insurance Comapny. Pic taken today 2/23/09.

[Marc82]

New Southington Target. Opened October 08. Located off West Street (Route 229) on Executive BLVD South near The Hartford Insurance Comapny. Pic taken today 2/23/09.

[Marc82]

New Southington Target. Opened October 08. Located off West Street (Route 229) on Executive BLVD South near The Hartford Insurance Comapny. Pic taken today 2/23/09.

[wwefan101]

nice looking target

[CTAmeshopper]

It does look cool, looks exactly like the Torrington one from what I could tell. Those balls are interesting, and heavy. I wonder what they are for still, decoration? to prevent people from driving onto the sidewalk? what?

Anyway all their stores look like they were built in the future.:D:cool:

[videogamer75]

That's also what the Turnersville, NJ store looks like, as well as several other ones in my area. Target has renovated a LOT of their stores to this new look already.

[wwefan101]

 kool  i want one like it

[Zayre88]

February 24, 2009

Target's profit falls 41 percent amid downturn

MINNEAPOLIS - Target Corp. says its fourth-quarter profit fell 41 percent as consumer spending suffered amid high unemployment and other economic woes.

The discount retailer earned $609 million, or 81 cents per share, in the quarter ended Jan. 31. That compares to $1.03 billion, or $1.23 per share, a year earlier.

Revenue in the quarter fell 1.6 percent to $19.02 billion.

http://www.msnbc.msn.com/id/29365571/