News Summary: Target’s 2Q net income drops 13 pct
Posted at: 08/21/2013 1:35 PM
By The Associated Press
THE NEWS: Target Corp. reported a 13 percent drop in second-quarter profits as the cheap-chic retailer deals with cautious U.S. shoppers and higher-than-expected costs related to its move into Canada.
BEHIND THE NUMBERS: Target is the latest in a string of companies, including rival Wal-Mart, that have lowered their business expectations as they contend with an uncertain economy. But Target is also seeing that its expansion into Canada, its first foray outside the U.S., has been more challenging than previously thought.
WHAT’S NEXT: Target now expects earnings per share to be at the low end of its previous range of $4.70 to $4.90. In May, the company trimmed its projections from the original $4.85 to $5.05. Analysts expect $4.29 per share for the year.
(Copyright 2013 by The Associated Press. All Rights Reserved.)