Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (44590)	2/26/2008 12:36:22 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70762

Sales Slowdown Drags on Target 4Q Profit Tuesday February 26, 11:48 am ET By Joshua Freed, AP Business Writer Target 4Q Earns Fall on Slower Sales, but Edge Past Expectations MINNEAPOLIS (AP) -- Target said fourth-quarter profits slipped on poor holiday sales and a quirk in the earnings calendar, but results were slightly better than Wall Street had expected amid a dismal period for retailers. ADVERTISEMENT The discount-store operator said Tuesday that earnings fell 8 percent to $1.03 billion, or $1.23 per share, from $1.12 billion, or $1.29 per share last year. Analysts polled by Thomson Financial were expecting $1.22 per share. Revenue edged up nearly 1 percent to $19.87 billion, from $19.71 billion last year. Analysts expected revenue of $20 billion. Results were helped by new-store expansion and revenue from credit card operations. Sales in stores open at least one year, known as same-store sales, edged up 0.2 percent. The most recent fourth quarter was a week shorter than in 2006. "These results fell short of our expectations as a more difficult economic environment and hesitant consumer constrained our sales growth," said Chairman and Chief Executive Bob Ulrich on a conference call. Target Chief Financial Officer Doug Scovanner said the median Wall Street expectations of 73 cents per share for the first quarter, and $3.56 per share for the year, were a "reasonable range." Scovanner said comparable-store sales are expected to rise 2 percent to 3 percent for the full year. He said the prediction for better results later this year is based on easier comparisons to the weak end of 2007, not a prediction about an economic rebound by the end of 2008. Target shares rose $1.84, or 3.5 percent, to $55.09 in morning trading. Target reported $137 million in pretax fourth-quarter profit from its credit cards, up from $122 million during the same period last year. Its provision for bad debts jumped 67 percent to $170 million. Minneapolis-based Target said it repurchased 26.5 million shares for $1.45 billion during the quarter. In addition, it said has the right to buy another 4 percent of its outstanding shares. The options expire in April, May, and June. For the full year, Target earned $2.85 billion, or $3.33 per share, up from a 2006 profit of $2.79 billion, or $3.21 a share. Revenue rose 6.5 percent to $63.37 billion, from $59.49 billion a year ago. [Harry: Given that target is a discount retailer, the growth in their crdit card business should be a concern. It is a new operation starting from a low base it is not an issue, but growth in an established business indicates it customers are having to charge more on credit as opposed to pay as you go.]