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Target earnings plunge on Canadian costs
November 21st, 2013
MINNEAPOLIS – Third quarter net income at Target Corp. fell 46.4% to $341 million despite a 4% increase in sales to $17.26 billion.
On a per share basis, earnings plunged 44.3% to 54 cents, but excluding a negative impact of 30 cents per share, primarily from its Canadian segment, adjusted earnings declined 6% to 84 cents per share. Analysts surveyed by FactSet expected 64 cents per share on average.
Comparable-store sales in the United States rose 0.9%, as a 1.3% dip in customer traffic offset a 2.2% gain in average transaction.
"Target’s third quarter financial results reflect continued strong execution in our U.S. segment in an environment where consumer spending remains constrained," said chairman, president and chief executive officer Gregg Steinhafel.
Target now projects full-year earnings of about $3.52 per diluted share, with adjusted earnings between $4.59 and $4.69, down from an earlier forecast of $4.70 to $4.90. The Canadian segment is expected to shave between 95 cents and $1.05 from earnings, with a further net negative impact of about 12 cents from early debt retirement.