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Target Profits Drop Drastically


Minneapolis Target said Tuesday that its net income for the fiscal fourth quarter ended Jan. 31 was $609.0 million, a steep drop from $1.028 billion for the same period a year ago.

Quarterly sales declined 1.6% to $19 billion from $19.3 billion a year ago. This decline was due to a 5.9% drop in same-store sales.

Target said it had to cut prices to spur sales, and rather than making discretionary purchases of apparel and home furnishings, customers gravitated toward buying more lower-margin, non-discretionary items, such as food or household cleaners, according to a company statement.

These results mark Target’s sixth consecutive drop in quarterly profits.

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