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Target Sales Increase 10.7%

11/13/2003 02:52:00 PM Eastern

Minneapolis - Third quarter revenue at Target Corp. jumped 10.7 percent, to $11.3 billion, from $10.2 billion in the year-ago period.

These sales were driven by the company’s Target Stores segment, which enjoyed increased fiscal third quarter sales and profit, while the department stores segment registered declining revenue and earnings.

Consolidated comp-store sales increased 4.3 percent, while net earnings climbed 8.7 percent, hitting $302 million, compared with $277 million in the same three months in 2002.

Consolidated Target sales in the third quarter received a big boost from the 13.9 percent revenue increase at the Target Stores segment, which notched $9.6 billion for the three months, ended Nov. 1, up from $8.5 billion year on year. Comp-store Target segment sales rose 6.7 percent in the third quarter, while pre-tax profit increased 12.5 percent, to $604 million, up from $537 million a year earlier.

At the same time, department store Mervyn's saw a 10.1 percent dip in third quarter sales, while Marshall Field's registered a 6.3 percent drop in third quarter revenue. Mervyn's third quarter pre-tax profit was off 41.8 percent, while Marshall Field's had a slide of 54.7 percent.

Consolidated Target revenue for the nine months increased 9.2 percent, to $32.6 billion, from $29.9 billion. Net earnings rose 4.4 percent, reaching $1 billion, up from $966 million in the same period a year ago.

Target Stores segment revenue of $27.9 billion for the nine months was an 11.7 percent increase over the $25 billion recorded in the same period a year earlier. Same-store sales climbed 3.5 percent. Nine-month pre-tax profit at Target rose 8.5 percent, to $2.1 billion, compared with $1.9 billion year over year.