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Target profit doubles, ups estimate

Wednesday, August 19, 2015 - 01:04

The retailer is making a comeback under CEO Brian Cornell. Sales rose for the sixth straight quarter. Fred Katayama reports.

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Target showing signs of improvement after Brian Cornell's first year at the helm. Strong sales of clothing and home goods helped drive the retailer's sales higher for the sixth straight quarter. Profit more than doubled, crushing analysts' estimates. And the company raised its full-year earnings outlook. Under Cornell, Target exited Canada, replaced executives, and strengthened its focus on what had once been its strength, home and apparel. Target cited particular strength in sales of children's items and wellness goods. Target is bouncing back from the massive data breach that hit the retailer two years ago during the holiday shopping season. Evercore ISI analyst Greg Melich said, "Target is rebuilding customer trust wtih traffic positive for the third straight quarter." Target's stock has climbed nearly 6 percent this year while archrival Wal-Mart's is down 19 percent. Target added to those gains in early trading. The company also outperformed Wal-Mart in comparable store sales and with its bullish outlook. Wal-Mart cut its earnings forecast.

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Target profit doubles, ups estimate

Wednesday, August 19, 2015 - 01:04