US retailer Target Corporation has reported a 5.2 per cent drop in earnings for the fourth quarter of 2011 following sluggish sales during the competitive holiday promotional period.
In a press release the company posted net earnings of US$981m, or $1.45 per share, against US$1.04bn during the same period of 2010.
Revenue, meanwhile, rose by 3.3 per cent to US$20.9bn, up from US$20.3bn last year, due to a 2.2 per cent increase in comparable-store sales and the contribution from new stores.
Profit margins, however, fell to 28.4 per cent from 28.7 per cent in the same period a year earlier.
“Target generated strong financial performance in 2011, overcoming sluggish economic growth, restrained consumer spending and an intensely promotional holiday season,” said Gregg Steinhafel, chairman, president, and CEO.
“For the full year, our US businesses generated 14.3 per cent growth in adjusted earnings per share, and we experienced our strongest growth in comparable-store sales since 2007.
During 2012, Target plans to open 20-25 stores and will add 15 -20 locations, including the opening in July of five stores under the chain’s new urban banner, CityTarget.
The group will also launch its first Canadian Target outlets in early 2013.
Target currently operates 1,763 stores across the US.
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