Target profit leaps 29% in Q1
Minneapolis Target Corp. reported Wednesday that its first-quarter net income jumped a hearty 29%, citing improvements in credit-card business and higher sales of more profitable items such as apparel.
The retailer reported net income of $671 million for the quarter ended May 1, compared with $522 million in the year-ago period.
Total revenue rose 5% to $15.59 billion, edging Wall Street expectations. Same-store sales rose 2.8%.
Chairman and CEO Gregg Steinhafel said the results came in a “stronger-than-expected economic environment,” noting that the retail segment beat expectations as sales of discretionary items with high profit margins such as clothing were particularly strong. Target’s gross profit margin increased to 31.3% in the first quarter, up from 30.8% in the prior year. Profitability in Target’s credit-card segment was also well above expectations.
Target’s sales results were in sharp contrast with Wal-Mart, which on Tuesday reported a 1.1% drop in same-store sales and a decline in customer counts for the second consecutive period.
To turn around sales, Target has advertised low prices and expanded its food offerings. The retailer also rolled out a new store format starting in April, featuring amped-up home furnishings, larger grocery sections and improved video-game displays.
Huffy CEO named to Bikes Belong board
CENTERVILLE, Ohio Huffy Corporation’s president and CEO Bill Smith has been named to the board of directors of the Bikes Belong Coalition.
Bikes Belong promotes bicycling nationally by securing federal funding and awarding grants to improve bicycling infrastructure, sponsor community programs, and ensure cooperation throughout the bicycling industry.
“Throughout its history, Huffy Corporation has been involved with helping cycling communities benefit from an expanding trail system, growing safety efforts, racing programs and more. These initiatives show Huffy’s unyielding support of the bicycling industry,” says Bruno Maier, VP Bikes Belong. “Bill’s experience and leadership will be a great benefit to our organization.”
Dick’s beats Q1 earnings estimates
PITTSBURGH Dick’s Sporting Goods reported consolidated net income for the first quarter ended May 1 of $26.2 million, or 22 cents per diluted share. The first quarter earnings per diluted share exceeded estimated earnings expectations provided on March 9 of 12 cents to 13 cents per diluted share. For the first quarter ended May 2, 2009, the company reported consolidated non-GAAP net income of $12.8 million, or 11 cents per diluted share.
Net sales for the first quarter of 2010 increased by 9.2% to $1billion due primarily to an 8.2% increase in consolidated comparable-store sales and the opening of new stores, the company reported.
“In the first quarter, we grew earnings through higher sales and improved margins, increased our cash position by $161 million, and effectively managed our inventory levels,” said Edward Stack, chairman and CEO. “At the same time, we continued to invest in the future growth of our business through the opening of new Dick’s Sporting Goods stores, investing in technology and ramping up marketing initiatives geared towards driving market share gains.”
Based on an estimated 121 million diluted shares outstanding, the company said it currently anticipates reporting consolidated earnings per diluted share of approximately $1.41 to $1.44 for the full year. Comparable-store sales are expected to increase approximately 3 to 4% compared with a 1.4% decrease in 2009.
Based on an estimated 121 million diluted shares outstanding, the company said it anticipates reporting consolidated earnings per diluted share of approximately 37 cents to 39 cents in the second quarter of 2010. Comparable-store sales are expected to increase approximately 4% to 5% compared with a 4.1% decrease in the second quarter last year.