Second quarter unlucky for Target with 13 percent profit drop


Target reported a 13 percent drop in second-quarter profits Wednesday. The accounting is for the quarter that ended on Aug. 3.

The Wall Street Journal theorized that an expensive and uneven launch of new stores across Canada, along with shoppers who continue to be cautious with their cash, led to the disappointing report.

The Associated Press reports that the Minneapolis-based company is the latest in a string of retailers, including rival Wal-Mart, that have lowered business expectations as they face an uncertain economy.

"Target's second quarter financial results benefited from disciplined execution of our strategy and strong expense control, offsetting softer-than-expected sales," according to Chairman and Chief Executive Gregg Steinhafel, who was quoted in the Journal.

Target says it earned $611 million, or 95 cents per share. That compares with $704 million, or $1.06 per share, a year earlier. Analysts were expecting earnings of 96 cents per share on revenue of $17.28 billion, according to FactSet.

Target has worked to build its customer base by offering a larger selection of food and giving shoppers a 5 percent discount when they pay with Target-branded credit and debit cards. Next month, Target is set to launch its latest limited-time designer collaboration, this time with Phillip Lim.

Next Up

Kenta Maeda

Twins pull Maeda early, White Sox pummel bullpen

Jose Abreu's two-run homer gave the White Sox a 9-3 victory.

boys volleyball

Girls wrestling sanctioned as MSHSL activity; boys volleyball 2 votes shy

There will be section and state tournaments for girls-only wrestling next school year.

P.J. Fleck

Gopher players defend PJ Fleck after WCCO-TV report

"The public has made our statement," a U of M spokesperson said.

vaccine, covid

Twin Cities police investigating COVID vaccine thefts in viral videos

Videos of both incidents were recorded and shared online.

Guthrie theater

Guthrie to reopen to the public in July, shows resume this fall

The theater has been closed to the public for more than a year.

Target - good and gather plant based

Target is launching more than 30 new plant-based grocery products

All are part of the company's hit Good & Gather brand.

Roller Garden

Roller Garden to auction off skates, signs, arcade games and more

Many items from the beloved Roller Garden will be up for auction next month.

joseph ness booking photo

Charges: Chanhassen man fired hundreds of rounds, killing his sister

Six rifles, including AR-15 and AK-47 variants, were found inside the home.

police lights

Woman robbed and assaulted at gunpoint in Waite Park, police say

The incident occurred on Sunday at around 11:30 p.m.

pixabay - marijuana cannabis

Marijuana legalization: Minnesota House to vote Thursday

The "historic" vote on the House floor is set for Thursday afternoon.