Target sees disappointing Q3 sales
MINNEAPOLIS Target has released its third quarter results for the period ended Nov. 3, 2007. The net earnings were $483 million compared to the third quarter of 2006, which saw earnings of $506 million.
Total revenues in the third quarter increased 9.3 percent to $14.8 billion from $13.6 billion in 2006, reflecting a 3.7 percent increase in comparable-store sales combined with the contribution from new stores and credit card operations. The contribution from the company’s credit card operations to the third-quarter earnings before taxes was $157 million, an increase of $23 million, or 17.1 percent, from the same period in 2006.
“Our third-quarter earnings were disappointing due to soft sales in our higher margin categories, leading to lower-than-expected gross margin in our core retail operations,” said Bob Ulrich, chairman and chief executive officer. “However, we have not observed any meaningful change in the intensity of the competitive environment and continue to believe that we are well-positioned to operate in a variety of sales environments going forward.”
The company also announced that its board of directors has authorized a new $10 billion share repurchase program, replacing the previous authorization.
Safeway Contributes to Prostate Cancer Research
PLEASANTON, Calif. Safeway and the Prostate Cancer Foundation are teaming up to donate $6 million to fund the S.T.A.R. Program (Special Team Amplification Research).
Safeway will contribute $3 million that it raised through customer donations made at checkout counters. The Prostate Cancer Foundation will match that donation to fund research that explores the role of targeted heat therapy in treating prostate cancer.
“Supporting this kind of innovative research has become a trademark of the Prostate Cancer Foundation and [is] the principle reason Safeway developed a relationship with the organization more than seven years ago,” said Steve Burd, chairman, president and chief executive officer of Safeway,
CVS collects donations for St. Jude Children’s Research Hospital
WOONSOCKET, R.I. CVS will be participating in the fourth year of the St. Jude Children’s Research Hospital Thanks and Giving Campaign, which will run nationwide in CVS stores through Dec. 8.
Under the St. Jude Thanks and Giving campaign, CVS store associates will encourage customers to add $1 to their purchase at the register to support the research of St. Jude, a pediatric cancer research center.
In the first three years of the campaign, CVS and its customers have raised more than $5 million for the hospital.