Target Earnings Beat Expectations
Retail giant Target reported a 6.3 percent drop in second-quarter profit this morning, but it still beat expectations thanks to cost-cutting.
Revenue was down 2.6 percent compared with the second quarter of last year.
Cost-cutting enabled Target to eke up its gross profit margin rate, mostly by slashing staff, freezing the salaries of senior managers and cinching up credit card writing.
Wal-Mart has sapped some of Target's business during the recession, as consumers "trade down" to cheaper products. As a result, Target said it's expanding its food sales, hoping to bring back some of the traffic from Wal-Mart.
-- Frank Ahrens
Sign up to get The Ticker on Twitter
By
Frank Ahrens
|
August 18, 2009; 10:13 AM ET
Categories:
The Ticker
| Tags: Target, Wal-Mart
Save & Share:
Previous: Markets Open Up Slightly in Rebound
Next: GM Announces First Production Hike, Worker Rehire Since Bankruptcy
Posted by: Dermitt | August 18, 2009 11:21 AM | Report abuse
The comments to this entry are closed.
We are going from Aim Higher to aim lower. I'm sticking with higher. Quality still pays for itself. Junk begets junk. The Post is looking bouncy. Bounce up, it's better than bounce down. Fast women, fast money and fast cars still make my heart race. Love is still slow. It only seems fast. It gets you higher and higher is just great.