Target Corp., U.S.-based mass merchandising retailer selling small appliances, electronics, floor care appliances, and air-conditioners, reported net earnings of $704 million for it second quarter ended July 30, 2011, compared with $679 million in the quarter ended July 31, 2010.
Target's sales increased 5.1% in the second quarter to $15.9 billion in 2011 from $15.1 billion in 2010, due to a 3.9% increase in comparable-store sales and the contribution from new stores. Segment earnings before interest expense and income taxes (EBIT) were $1,147 million in the second quarter of 2011, an increase of 4.6% from $1,096 million in 2010.
Second quarter 2011 EBITDA and EBIT margin rates were 10.3% and 7.2% , respectively, compared with 10.5% and 7.2% in 2010. Second quarter gross margin rate declined to 31.6% in 2011 from 32.0% in 2010, due to the impact of Target's integrated growth strategies. The company's second quarter selling, general and administrative (SG&A) expense rate improved to 21.3% in 2011, compared with 21.5% in 2010.
Minneapolis-based Target has 1,762 stores in 49 states nationwide and at Target.com. In addition, the company operates a credit card segment that offers branded proprietary credit card products.
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