Target's Q2: profits down |
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| Thursday, 21 August 2008 | |
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Target reported a 7.6 percent drop in quarterly profits this week. Profits was $634 million for its second quarter, down from $686 million
over the same period last year. Earnings per share increased 2.4 percent to 82 cents, from 80 cents in the 2007 period.
Sales in the second quarter grew 5.7 percent to $15 billion, from $14.2 billion in 2007, due to the contribution from new store expansion. But same-store sales at the Minneapolis-based chain declined 0.4 percent for the second quarter. It seemed shoppers passed over trendy clothes and home décor in favour of everyday necessities, as the biggest declines in store traffic were recorded in those categories. So Target is pushing its designer diffusion lines and trying to convince consumers its prices are as low as Wal-Mart's while touting its designer partnerships and style-driven products. The efforts include the Go International private label collection next month, followed by new designer partnerships in October with Jonathan Saunders for apparel, Anya Hindmarch for handbags and Sigerson Morrison for shoes. Target has something special for New Yorkers, as the chain will open four 'Bullseye bodega" pop-up shops in New York in Midtown, Union Square, the East Village and Soho on September 11th, showcasing the new diffusion lines. |
