Target displeased with quarterly earnings

MINNEAPOLIS Target today reported net earnings of $483 million, or 56 cents per diluted share, for the third quarter ended Nov. 3 compared with $506 million, or 59 cents per diluted share, in the third quarter ended Oct. 28, 2006.

“Our third quarter earnings were disappointing due to soft sales in our higher margin categories, leading to lower-than-expected gross margin in our core retail operations,” said Bob Ulrich, chairman and ceo. “However, we have not observed any meaningful change in the intensity of the competitive environment and continue to believe that we are well-positioned to operate in a variety of sales environments going forward.” 

Total revenues in the third quarter increased 9.3% to $14.8 billion from $13.6 billion in 2006, reflecting a 3.7% increase in comparable-store sales.