Target posts 4Q earnings slip

MINNEAPOLIS Target today reported net earnings of $1.03 billion for the fourth quarter ended Feb. 2, compared with $1.12 billion in the fourth quarter ended Feb. 3, 2007. Earnings per diluted share in the fourth quarter decreased 4.7% to $1.23 from $1.29 in the same period a year ago.

For the full fiscal year 2007, net earnings were $2.85 billion, compared with $2.8 billion in fiscal 2006. Earnings per share increased 3.9%to $3.33 from $3.21 a year ago.

“Our financial performance in 2007 fell short of our expectations as the pace of sales and earnings slowed considerably in the second half of the year,” said Bob Ulrich, chairman and ceo. “As we enter 2008, we remain keenly focused on the disciplined execution of our core strategy, positioning Target to deliver improved financial results, even in the face of continued challenges in the current economic environment.” 

For fiscal 2007, total revenues increased 6.5% to $63.4 billion from $59.5 billion in 2006. According to Target, this growth was fueled by the contribution from new store expansion, a 3% increase in comparable-store sales, and contribution from credit card operations, offset by the impact of an extra fiscal week in 2006.

Total revenues in the fourth quarter increased 0.8% to $19.9 billion from $19.7 billion in 2006, due to the contribution from new store expansion, a 0.2% increase in comparable-store sales, and contribution from credit card operations, offset by the impact of an extra fiscal week in 2006, the company reported.