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.
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.