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MINNEAPOLIIS — Target Corp. on Wednesday reported lower earnings in its second quarter, citing sluggish sales and ongoing struggles to recover from last year’s data breach and its Canadian rollout.
Target Corp. on Wednesday reported lower earnings in its second quarter, citing sluggish sales and ongoing struggles to recover from last year’s data breach and its Canadian rollout.
Second-quarter net income fell to $234 million, or 37 cents a share, from $611 million, or 95 cents, a year earlier, the company said.
Target now expects full-year earnings of $3.10 to $3.30 a share, excluding some items, down from a previous forecast of as much as $3.90.
"While results from the quarter didn’t meet our expectations, we are seeing some early signs of progress as we work to improve results in the U.S. and Canada," said John Mulligan, Target’s chief financial officer and interim chief executive officer through the quarter.
Target last month hired PepsiCo Inc. executive Brian Cornell as its new chief executive following the ouster of Gregg Steinhafel in May. Cornell began his duties on August 12.
"In the U.S., traffic trends continue to recover and monthly sales are improving, with July comparable sales up more than 1%," Mulligan said. "Better U.S. sales have continued into August, driven by early back-to-school results. In Canada, the team is making important changes to operations and the merchandise assortment with a focus on delivering improved results by this holiday season."
Target this week began extending the hours of about half of its stores, with some remaining open until midnight, in a bid to boost traffic.
