Target Profit Flat in Second Quarter
August 15, 2012,
MINNEAPOLIS-Target reported net income of $704 million in its fiscal second quarter, exactly the same bottom-line total in the second quarter of last year.
Added expenses offset a 3.5 percent gain in net sales, which totaled $16.5 billion in the quarter, which ended on July 28. The sales pickup included a same-store sales increase of 3.1 percent. A Target statement said the company saw its gross margin fall 27 basis points to 31.3 percent, which owed to the impact of its integrated growth strategies. Also, selling, general and administrative expenses rose 3.3 percent in dollars, although as a percentage of sales SG&A slipped four basis points to 21.8 percent.