Target grows earnings, remains cautious

Target continued to control expenses in its third quarter, reporting net earnings of $436 million for the period ended Oct. 31, compared with $369 million in the third quarter ended Nov.1, 2008. Diluted earnings per share in the third quarter increased 18.6% to 58 cents from 49 cents in the same period a year ago.

“We’re very pleased with our third quarter earnings performance, which reflects strong execution and a commitment to continued innovation by teams throughout the company,” said Gregg Steinhafel, chairman, president and CEO of Target. “As we look ahead, we remain keenly focused on delighting our guests with exciting merchandise, exceptional prices and superior service during the holiday season and believe we are well-positioned to capture profitable market share.”

The company reported a sales increase of 1.4% for the third quarter to $14.8 billion in 2009 from $14.6 billion in 2008, due to the contribution from new store expansion, partially offset by a 1.6% decline in comparable-store sales.

Target did not provide much in the way of an outlook, but said it remains cautious about fourth quarter performance and is planning conservatively.