Target
The retailer is counting on driving customers into its stores in the coming months with a 5 percent discount for its store credit- card holders and a focus on food.
Even with those, the company offered a conservative sales outlook as a slowing economy weighs down its expectations. The cautious view comes as Target reported a 14.3 percent increase in net income, as improved business in its credit-card division, cost-cutting and strong demand for its stylish fashions, which carry fat profit margins, overcame disappointing sales.
The discounter drove more customers into its stores, but they spent less on each trip amid job worries. The company said its earnings the rest of the year should be in line with Wall Street forecasts, lifting shares $1.27, or 2.5 percent, to $51.95.
“As we consider the economy and the pattern of our sales, it’s clear that the second quarter marked a change in recent trends,” Gregg Steinhafel, chairman, president and chief executive, said on a conference call with investors Wednesday.
Target’s results are in contrast with archrival Wal-Mart, which has reported five straight quarterly declines for a key measure of revenue and continues to struggle to keep customers. The Associated Press
