Target taking price hikes

MINNEAPOLIS -- Target Stores is accepting price hikes from many of its suppliers, particularly in food -- and passing them along to consumers successfully for the most part, the retailer said during its third-quarter earnings call today.

Driven by robust same-store sales, wider margins and a rapidly growing credit business, third quarter profits from continuing operations jumped 34.5 percent, to $435 million from $324 million last year.

Retail sales climbed 11.7 percent, to $11.9 billion, and comps improved 5.9 percent. Credit card sales raced ahead 18.1 percent. Total revenuesrose 11.9 percent, to $12.2 billion.

Net income declined 18 percent, to $435 million from $531 million, but the year-over-year comparison is skewed by one-time items related to the sale of Mervyn's, which inflated last year’s profit by $207 million.

Responding to analysts' concerns about the home department's lagging performance, compared with the total company, Gregg Steinhafel, president, said he expects shoppers' response to the new Thomas O'Brien collection will resemble that of Fieldcrest.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • The Countdown to the ICON Honors Continues featuring Christophe Pourny

    Camera Icon More Videos


HTT digital edition

See the May 2017 issue of Home & Textiles Today. In this issue, we discuss our annual Market Basket survey, which finds higher prices and more polyester at leading retailers. See details!