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CityTarget love amid modest 2Q growth
Target’s second quarter sales increased 3.5% to $16.5 billion and the company’s profits grew 2.9% to $1.06, five cents better than analysts expected.
The company’s second quarter results were negatively affected by pre-opening expenses related to next year’s entry into Canada. Excluding those expenses, Target said its profits would have increased 4.6% to $1.12 compared to $1.07 last year. Including expenses related to Canada, Target increased its full year profit forecast to a range of $4.20 to $4.40 from an earlier guidance range of $4.10 to $4.30.
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Online improvement not evident in traffic numbers yet
July may not be a big month for online shopping, but traffic numbers at Target.com are heading in the wrong direction.
The online audience measurement firm comScore Media Metrix reported that Target.com had approximately 25.8 million unique visitors during July 2012 compared to roughly 26.5 million during July 2011. Despite the decline, on a positive note, Target was ranked 46th on the firm’s monthly Top 50 Web Properties report, making it the only traditional retailer beside Walmart to appear on the top 50 list.