Target Corp. on Wednesday posted first-quarter results that beat Wall Street's expectations by 4 cents on a strong sales gain.
Target said net income jumped 17.5 percent to $651 million, or 75 cents a diluted share, from $554 million, or 63 cents, in the same year-ago quarter. Wall Street was expecting earnings per share of 71 cents. Total revenues gained 9.2 percent to $14 billion from $12.9 billion, which included a sales increase of 9 percent to $13.6 billion from $12.5 billion. Same-store sales increased 4.3 percent. Credit card revenues also helped to boost the company's bottom line, which jumped 13 percent in the quarter to $418 million from $370 million.
"Overall, we continued to increase our market share growing our total sales at 9 percent, a much more rapid pace than the growth rate of the overall U.S. market for similar or identical merchandising," said Bob Ulrich, chairman and chief executive officer, in a conference call to Wall Street analysts.
In the same call, Gregg W. Steinhafel, president, said sales included "better-than-average performance in newborn-infant-toddler, electronics and nondiscretionary categories like health and beauty, pharmacy and consumables."
Steinhafel said to sustain the discounter's competitive advantage, Target is launching several initiatives in the second quarter. Earlier this month, the company debuted Patrick Robinson's Greek-inspired fashion. In July, Target will be introducing Libertine by the British fashion duo Cindy Greene and Johnson Hartig. The retailer plans to continue to differentiate itself by increasing its private label brands in its food business.
Todd Slater of Lazard Capital Markets, in a research note Wednesday after the company posted results, wrote that his firm is "maintaining its 2007 earnings per share estimate of $3.68, above $3.60 guidance that was in line with consensus. We think guidance will be proven conservative, if the consumer remains healthy and credit delinquencies continue to improve."
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast