Annual Report/ Financial Analysis Project
History of Target
With its headquarters in Minneapolis, Minnesota, Target is a continuously striving company focused on improving every aspect of their business – whether it's their merchandising for guests, technology solutions, or even the future design of the company. The first Target store was founded and created in 1932 in Roseville, Minnesota by George Dayton. Originally created to be a discounted merchandising company, Target surpassed all doubters expectations when it began to offer common stock, and 1969, merging with J.L. Hudson and for the first time, Target revenues topped $1 billion dollars. Today Target is the second discount retailer in the country, trailing its main competitor Wal-Mart. Two decades later target has exceeded $67 million in revenues annually generated through sales of apparel, electronics, house ware and other product categories through both online operations and out of their 1,750 stores in the U.S.
Target is one of the top ten largest retailers in the United States by sales and being such, there are many opportunities in purchasing its stock. Targets common stock is listed in the New York Stock Exchange under the stock symbol of “TGT.“ Target overcame many obstacles such as an unsolicited takeover bid by the Dart Group and nine years later when rival J.C. Penney Company, Inc. offered more than $6.5 billion for the retailer. Today Target stock is healed at $53.07, a big difference from even the 1900s when their stock ranged from $3.50 to $4.24. Target has $693 million of shares outstanding as of March 7, 2011 with 6 million shares of common stock, par value $0.08333, and up to 5 million shares of preferred stock, par value $0.01.
Looking towards the future Targets Chairman, President, and CEO: Gregg W. Steinhafel has stated that Target has taken its first step in expanding outside of the US with the purchase of 220 Zellers stores in Canada (Flavelle Business Reporter). Target plans to convert 100 to 150 of these stores by 2013 or 2014, with revenues similar to those of its US counterparts. Target has also focused in its exceeding revenues from its new designer Angela Missoni. This clothing and home goods line was Targets biggest limited-designer collection to date, selling out at most stores and online in less than a day rather then its predicted six weeks.
Ranked at number 33 on the Fortune 500 as of 2010 as well as one the most philanthropic companies in the US, Target has yet to yield on their giving. Target donates around 5 percent of its pre-tax operating profit; it gives over $3 million a week (up from $2 million in years prior) to the communities in which it operates (www.wikipedia.com). It also gives a percentage of charges from its Target Visa to schools designated by the cardholders. To date, Target has given over $150 million to schools across the United States through this program.
From the past, to the future, in the now present, Target has reinvented itself, and leaves potential customers and shareholders interested in this evolving company. Target has definitely become a profiting company that still has room to grow, and as it succeeds and overcome obstacles with competitors its directors and managers look forward to a more profitable future.
“Our mission is to make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less.®”
Target’s mission statement alone draws the future shareholder in, and opens up the possibility of profit and growth. Targets annual report was drawn from a consolidated financial statement created in accordance with the US generally accepted accounting principle (GAAP). Target financial statements are summarized in the beginning and end of January each...
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