After a string of costly missteps, Target, one of the nation’s largest retailers, indicated on Wednesday that it might finally be on more solid footing.þþWith help from stronger sales of its signature items, including a line of Lilly Pulitzer clothing and other exclusive products, Target reported a profit in the first quarter of the year that beat expectations.þþThe company on Wednesday reported earnings of $1.10 a share, compared with 92 cents in the year-ago quarter. Revenue rose to $17.1 billion, compared with $16.7 billion in the United States in the first fiscal quarter of 2014. Analysts polled by Thomson Reuters had expected $1.03 a share on revenue of $17.08 billion.þþTarget hopes the results will be the beginning of a turnaround for the company after a period of turmoil that included a huge data breach in 2013 and an unsuccessful expansion into Canada. The company has also had difficulty in the grocery aisle, where it struggled to compete with discount food giants like Walmart.þþLess than two years after opening in Canada, Target said on Thursday that it would close its 133 stores in the country, laying off 17,600 people.þþTarget’s Red Ink Runs Out in CanadaJAN. 15, 2015 þþ þThe company has been shuttering its Canadian operations this year, quickly closing 133 stores there by last month.þþThe company had a victory in one of the areas for which it is best known: designer collaborations. Its limited line of Lilly Pulitzer clothing spurred a frenzy online and in stores.þþ“Things like the Lilly event create the frosting on everything we do,” said Brian Cornell, Target’s chief executive, in a call to discuss the company’s results on Wednesday.þþOver all, online sales grew nearly 40 percent, and comparable store sales grew 2.3 percent. Comparable store sales of signature baby, children’s and wellness items more than doubled.þþ“Those are the categories where they can, in our opinion, differentiate themselves from their competitors,” said Brian Yarbrough, an analyst with Edward Jones. “What they needed to do was get back to offering exciting, fashionable merchandise.”þþProfit rose to $635 million in the quarter that ended May 2, compared with $418 million in the same period last year. The company also raised its full-year guidance by 5 cents, to a range of $4.50 to $4.65, up from $4.45 to $4.65.þþOther retailers reported less rosy results, as lower gas prices did not spur consumer spending in the beginning of the year. Kohl’s and Macy’s reported tepid sales, while Walmart missed expectations on Tuesday.þþIn March, Target said it would lay off 1,700 workers in an effort to trim about $2 billion in costs. Later that month, the retailer announced it would raise the minimum pay for its workers to $9 an hour, following in the steps of Walmart and TJX, owner of T. J. Maxx.þþ
Source: NY Times
