Target Q3 profit beats Street
Minneapolis — Target Corp. reported Thursday net income of $637 million for the third quarter, compared with $555 million in the prior-year period and beating Wall Street expectations.
The retailer previously reported that sales rose 3.4% to $16.60 billion in the quarter, and same-store sales climbed 2.9%.
Target is forecasting a fourth-quarter earnings range that at the high-end tops estimates.
Starbucks acquires Teavana for$620 million in all-cash deal
Seattle — Starbucks Coffee Co. announced Wednesday it will acquire specialty tea chain Teavana Holdings for $620 million in a move to gain traction in the $40 billion global tea industry.
According to Starbucks chairman, president and CEO Howard Schultz, the coffee company plans to grow and expand Teavana’s 300 mall-based stores as well as add a neighborhood store concept to accelerate Teavana’s domestic and global footprint.
Teavana, based in Atlanta, went public in July 2011. Its founder Andrew Mack said the company will continue to operate from its Atlanta home base.
“Being part of Starbucks will give us access to incredible industry knowledge and know how as well as the financial strength to super charge our business and allow us to continue our rapid growth to the benefit of all our supporters, including our dedicated employees worldwide,” Mack said in a statement.
Target well-positioned for holidays too
A 2.9% third quarter same store sales increase and the sale of its credit card business pushed Target’s third quarter profit up 17.6% to 96 cents a share.
Total sales increased 3.4% to $16.6 billion in third quarter due to the 2.9% comp increase and the benefit of a net increase of 18 stores compared to the prior year. Target ended the period with 1,781 stores and was up against a challenging prior year comparison when comps advanced 4.3%.
"We’re pleased with Target’s third quarter financial performance, which reflects superb execution across each of our business segments," said Gregg Steinhafel, chairman, president, and CEO of Target. "We are well-positioned to deliver strong fourth quarter performance by offering compelling merchandise and unbeatable value through initiatives like the Target/Neiman Marcus Holiday Collection, 5% REDcard Rewards and our new Holiday Price Match which allow our guests to shop at Target with confidence throughout the holiday season."
Earnings per share increased 17.6% to 96 cents from 82 cents, but that figure includes a 15 cent benefit from the pending sale of the company’s credit card receivables portfolio and expenses related to next year’s entry into Canada. On an adjusted basis, excluding the impact of expenses related to Canada, earnings per share increased 4.3% to 90 cents from 86 cents.