Target 3Q profit falls 24 percent in tough economy

Financial Crisis Posted on

Discount retailer Target Corp. said Monday that a difficult retail environment and weak results from its credit-card segment led to a 24 percent decline in third-quarter earnings.

Profit for the three months ended Nov. 1 fell to $369 million, or 49 cents per share, from $483 million, or 56 cents per share, last year. That was just above the average of 48 cents per share predicted by analysts polled by Thomson Reuters.

Revenue rose 2 percent to $15.11 billion from $18.4 billion last year, falling short of the $15.24 billion analysts expected.

The retail sector has been hit hard as consumers pull back on spending amid a deteriorating economy and shaky job market. Discounters such as Target and its chief rival, Wal-Mart Stores Inc., have benefited somewhat as consumers trade down and hunt for bargains, but Target has been helped less by this trend since more than 40 percent of its revenue coming from nonessential such as trendy fashions and housewares.

Chief Executive Gregg Steinhafel said in a statement that the results "reflect the significant macroeconomic challenges facing our retail and credit-card segments."

Sales were helped by new-store expansion, but that was offset by sales in stores open at least one year, which fell 3.3 percent during the quarter.

Profit in its credit-card business fell 83 percent to $35 million from $202 million last year, because of Target's lower investment in the portfolio, a decline in the portfolio's overall performance because of higher bad-debt expenses and lower interest rates.

Legal News Media

Legal News is the top headline legal news provider for lawyers and legalprofessionals. Read law articles and breaking news from law firm's across the United States to get the latest updates. We reserve the right, at our discretion, to change, modify, add, or remove portions of the site at any time. Your This site is solely for your personal use. You are, of course, welcome to print or otherwise copy material from this site for your personal use. However, you may not distribute, exchange, modify, sell or transmit anything you copy from this Site, including but not limited to any text, images, audio and video, for any business, commercial or public purpose. Any unauthorized use of the text, images, audio and video may violate copyright laws, trademark laws, the laws of privacy and publicity and civil and criminal statutes.

 

American Bar Association – Start and Run a Law Firm

NewYorkStateBar.com – Starting a Law Firm

Lawyer Website Designs