Target Net Edges Up 1.2 Percent in First Quarter
MINNEAPOLIS-With a sales gain of 6.1 percent, Target was able to pump its first-quarter net income by 1.2 percent to $697 million.
Net sales reached $16.5 billion, including a same-store sales gain of 5.3 percent. Sales in the quarter, which ended on April 28, were better than Target expected, said Gregg Steinhafel, chairman, president and CEO.
Gross margin lost 23 basis points to finish the quarter at 30.2 percent. The bottom line also took a hit from a 35.5 percent jump in credit-card expenses. Selling, general and administrative expenses--while rising 4.9 percent in dollars--shed 24 basis points as a percentage of sales to 20.5 percent.
Steinhafel said the outlook for the remainder of this year includes "continued economic uncertainty," but that Target remains focused on its strategy of delivering affordable merchandise and on "making thoughtful investments" in its U.S. and Canadian businesses.