NEW YORK – Target Corp (TGT) Tuesday reported higher quarterly profit, boosted by a 9.5 percent rise in revenue and returns from its credit-card business.
The second-largest U.S. discount retailer said earnings rose to $686 million, or 80 cents per share, in its second quarter ended Aug. 4, from $609 million, or 70 cents per share, a year earlier.
Analysts, on average, had been expecting it to earn 80 cents per share, according to Reuters Estimates.
Target's sales at existing stores have been outpacing those at larger rival Wal-Mart Stores (WMT) Inc as it has found success selling cheap but trendy clothing and home decor, and bringing in guest designers like Proenza Schouler. It is also stocking more food to attract customers into its stores more frequently.
Through Monday, Target's shares have risen almost 4 percent this year, while Wal-Mart shares are down close to 6 percent and the S&P Retail Index is down 7 percent.