Target shopping
Target (TGT) exceeded analysts' sales forecasts for its second quarter, and is banking on brisk consumer shopping patterns to continue at its 1,772 stores for the remainder of the year.

To that end, the nation's second largest discounter raised its annual profit forecast to as much as $4.40 a share from a maximum of $4.30 a share, as it adds more fresh food to stores, gets more shoppers to spend with its 5%-off REDcard and penetrates urban areas with the CityTarget format.

Target revenues rose 3.5% to $16.78 billion in the quarter that ended July 30, exceeding analysts' estimates.

Comp-store sales, revenue at stores opened at least a year, increased 3.1 percent, while earnings were $704 million, flat with the year-ago period.

The comp-store sales gain was driven by an increase in the number of transactions as well as "an increase in the average transaction amount," said Deborah Weinswig, Citi retail analyst, in a research note.

Not everything sold well, though. Electronics had another weak quarter "as this category continues to reflect mature product cycles in several categories. Most notably for us is video game hardware and software," said Kathryn Tesija, Target's executive vice president of merchandising, during the call.

And down the road, economic headwinds, such as the impending fiscal cliff -- which is expected to put a crimp in consumers' discretionary income -- could dampen business at the chain, CEO Gregg Steinhafel said during a conference call.

"As we look ahead, we are mindful of the continued economic challenges facing many of our guests, huge deficits at the state and national level and the fiscal cliff facing everyone at the end of the year," Steinhafel said. "This fall's presidential election will likely produce an avalanche of negative ads and elevate the uncertainty caused by potential policy changes that could follow the November vote."

Beyond the U.S. market, Target is gearing up for its international debut with the launch of stores in Canada next year.


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cslinz62

Look, Target is still a good store. It's a job hunting down sale items & what's worse is to drive to the store and it's sold out. Get a raincheck. Also, clip coupons, catch those items on sale or better....on clearance. I promise you you will beat Walmart prices anyday. Kroger is cheaper than Target & Walmart on some items as well.

August 20 2012 at 10:38 PM Report abuse rate up rate down Reply
smiles41

Careful, Target, after the unions ruin Wal-Mart they will go after YOU...

August 17 2012 at 9:05 AM Report abuse rate up rate down Reply
Mr. Rockafeller

one of you said about some store shelves being empty....that is so right...like in jewelry section most shelves of the cheap stuff was available....instead silver rings and all other better quality stuff or was all gone or only the crazy sizes that none want were left.......what is it gonna take to get in the heads of those that are in charge of buying for the store to carry what CUSTOMERS WANT not what he store wished they'd wantedj

August 17 2012 at 7:21 AM Report abuse rate up rate down Reply
Mr. Rockafeller

target workers dont make much.........what ' s new....? At some other store , like some small mom and pop store , they will earn even less. But I would like to see conditions for workers to be better ....like a stool to sit while waiting to ring up that next customer.......Then I was thinking ..... drivers of UPS and Fed Ex have no A/C in their trucks what an oven that must be......Now I know their CEO's make big bucks.....that is okay w/ me....they can make a quadrillion dollars a quarter and still be ok w/ me....but I would like to see workers have some air conditioning.....

August 17 2012 at 7:13 AM Report abuse rate up rate down Reply
Bloodthorn

yeah, target made record sales! but at what expense? they don't pay their employees worth a ****, take this from me, i worked there... i KNOW how it is.

August 16 2012 at 10:18 PM Report abuse rate up rate down Reply
underdogg182

But this can't be true. That bigoted hate organization the American Family Association doesn't like Target LOL. I'm guessing their boycott added to Target sales.

August 16 2012 at 9:55 PM Report abuse rate up rate down Reply
psridgell

A few weeks ago, Target showed a camera on sale. I drove there and it wasn't in stock, and not only that, they didn't think they were getting anymore. So I drove 20 miles to another larger Target. Same story, not in stock. Why the heck do you advertise items you don't have? To get people to come to the store and settle for a higher priced item. Target is slimy crooks, I will not go there again !

August 16 2012 at 9:29 PM Report abuse +1 rate up rate down Reply
2 replies to psridgell's comment
Zeppelyn

Just because two stores don't have an item in stock doesn't mean that other stores don't. What you fail to realize is that Target ads are nationwide, not locally made. It's hilarious that people think that something's in an ad and expects it to be in stock all the time. I guarantee you look in the ad and it'll say "quantities limited". Learn to read.

August 16 2012 at 9:50 PM Report abuse rate up rate down Reply
cslinz62

Get a raincheck on the camera. When they get them back in stock, they will mail you something in the mail that they have it again and you will take your slip in and get it for the sale price. Or look for it on Ebay. I get prices of things at the store and then buy it on Ebay. No sales tax, free shipping.

August 20 2012 at 10:35 PM Report abuse rate up rate down Reply
charlzebr

Right !...And WHO sold to China ? Greedy American corporations and entrepreneurs ...in an attempt to break the unions ....and ship jobs overseas ! That is why we have crappy products at those stores and when you have a problem with a product , you will NEVER get it! Target sold a product without parts and told me that they couldn't get it...because it came from China and China won't send the missing parts...and there is nothing they can do ?? Didn't know it was made in China or would never had bought it.
So all you " union bashers"...you can look for more of this is Romney and his " boy wonder", VP get into office..Kiss your jobs goodbye !... watch the corporations get richer ! YOu get what you vote for !

August 16 2012 at 6:39 PM Report abuse +2 rate up rate down Reply
1 reply to charlzebr's comment
LINDA

Why do you think American corporations went overseas......high taxes.Lower the taxes for American corporations and they will bring their businesses back.There are going to be 21 brand new shows on t.v. this year.Only 1 is going to be made in Hollywood.....why???....taxes.This government is taxing everybody to death and Gov.Brown is doing a great job of pouring on the taxes.

August 17 2012 at 3:32 AM Report abuse rate up rate down Reply
ladyredskins

Too bad Target is getting just like Walmart with empty shelves and not carrying the products they used to have on the shelves. I complained to Target and all I received in response was many people are complaining about that.

August 16 2012 at 6:27 PM Report abuse rate up rate down Reply
bensintbictalin

Amazing what happens when all the independent businesses have been driven to close.

August 16 2012 at 5:33 PM Report abuse -1 rate up rate down Reply