Minneapolis, MN, May 15, 2006–Target Corp., posted a 12 percent increase in first quarterly earnings, helped by strong Easter holiday and spring season sales, and big gains from its credit card business.
The company reported earnings of $554 million, or $0.63 per share, in the quarter, or $0.55 per share, in the same period a year earlier.
Analysts, on average, expected earnings of 64 cents per share.
Total revenues rose 12.1 percent to $12.86 billion.
Target’s sales have grown faster than Wal-Mart’s in recent quarters as customers bought trendy-but-inexpensive clothing and housewares. Wal-Mart has been adding its own fashionable merchandise as it tries to close the gap and tempt customers to buy more than just low-margin food.
Same-store sales rose 5.1 percent.
Target said its credit card business contributed $162 million to its first-quarter earnings before taxes, up nearly 60 percent from a year earlier.
For the full year, Target said it still expects earnings per share to show a percentage increase in the mid-teens.
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