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Target's Q2 Sales Rise 5%; CE Rebounds

8/17/2011 11:08:17 AM Eastern

Minneapolis - Target
reported mid-single digit sales and earnings gains for its second fiscal
quarter, ended July 30, and a resurgence in its CE business.

Profits rose 3.7
percent to $704 million on total sales of $15.9 billion, a 5.1 percent increase.
Comp-store sales increased 3.9 percent, while credit card revenues decreased 15
percent to $345 million.

"We're very
pleased with our second quarter financial results, which benefited from an acceleration
in the pace of our comparable-store sales growth," said chairman/president/chief
financial officer Gregg Steinhafel. "We continue to focus on strong execution
of our strategy, preparing Target to perform well in a variety of economic
environments."

In a conference
call, Steinhafel called the company's second-quarter performance the strongest
in four years, fueled by store remodels, compelling merchandising and Target's 5
percent rewards program for its private-label credit card.

Merchandising
executive VP Kathy Tesija said the most notable improvement was in CE, where
tablets led by iPad "were quite strong" and TV sales showed "stability, and
even growth," following several quarters of contraction.

The chain plans to
open six new locations in the current quarter, and will enter urban markets and
Canada over the next two years.

 

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