MINNEAPOLIS–Increased sales both on a same-store basis and from new stores pushed Target’s second-quarter net income up 3.7 percent, to $704 million.
Net sales totaled $15.9 billion, up 5.1 percent from last year’s second quarter and including a 3.9 percent pickup in same-store sales. Gregg Steinhafel, Target’s chairman, president and CEO, cited the acceleration in same-store sales (which edged up 1.7 percent in last year’s second quarter) as crucial to the company’s results in this year’s second quarter, which ended on July 30.
Gross margin declined 35 basis points to 31.6 percent, which Steinhafel attributed to the impact of Target’s integrated growth strategies. Selling, general and administrative expenses rose 6.4 percent in dollars and 28 basis points as a percentage of net sales, to 21.9 percent.
“We continue to focus on strong execution of our strategy, preparing Target to perform well in a variety of economic environments,” Steinhafel said.