Target Corporation Financial Summary

Only available on StudyMode
  • Download(s) : 363
  • Published : September 9, 2012
Open Document
Text Preview
Target Corporation, Target, is an exclusive retail discounter that provides on-trend, high quality merchandise at competitive prices in orderly and expansive guest-friendly stores. In addition to the retail stores, Target operates an online business, Target.com (Target.com, 2012). Target Corporation (NYSE:TGT) assists customers at 1,763 stores across the United States and also at Target.com. In 2013 the organization is planning to open their first stores in Canada. In addition to the retail segment, the organization operates a credit card subdivision that offers branded proprietary credit card products (Target.com, 2012). Target Corporation’s fiscal year ends on the Saturday nearest January 31st, unless otherwise stated. “References to years in this report relate to fiscal years, rather than to calendar years. Fiscal 2011 ended January 28, 2012, and consisted of 52 weeks. Fiscal 2010 ended January 29, 2011, and consisted of 52 weeks. Fiscal 2009 ended January 30, 2010, and consisted of 52 weeks. Fiscal 2012 will end on February 2, 2013, and will consist of 53 weeks” (Target Brands Inc, 2012). According to the 2011 Annual Report, Target Corporation sales have reached a new high of $68.5 billion in 2011 compared to $65.8 billion in 2010. Furthermore, Revenues increased from $67.4 billion to $69.9 billion. See “Consolidated Income Statement” below. Figure 1

Target Corporation, Consolidated Income Statement USD $ in Millions
12 months endedJan 28, 2012Jan 29, 2011Jan 30, 2010Jan 31, 2009Feb 2, 2008Feb 3, 2007
Sales68,466 65,786 63,435 62,884 61,471 57,878
Credit card revenues1,399 1,604 1,922 2,064 1,896 1,612
Revenues
69,865 67,390 65,357 64,948 63,367 59,490
Cost of sales
(47,860)(45,725)(44,062)(44,157)(41,895)(39,399)
Credit card expenses
(446)(860)(1,521)(1,609)(837)(707)
Gross profit
21,559 20,805 19,774 19,182 20,635 19,384
Selling, general and administrative expenses
(14,106)(13,469)(13,078)(12,954)(13,704)(12,819)
Depreciation and amortization
(2,131)(2,084)(2,023)(1,826)(1,659)(1,496)
Earnings before interest expense and income taxes
5,322 5,252 4,673 4,402 5,272 5,069
Nonrecourse debt collateralized by credit card receivables(72)(83)(97)(167)(133)(98)
Other interest expense(797)(677)(707)(727)(535)(499)
Interest expense
(869)(760)(804)(894)(668)(597)
Interest income
3 3 3 28 21 25
Net interest expense(866)(757)(801)(866)(647)(572)
Earnings before income taxes
4,456 4,495 3,872 3,536 4,625 4,497
Provision for income taxes
(1,527)(1,575)(1,384)(1,322)(1,776)(1,710)
Net earnings
2,929 2,920 2,488 2,214 2,849 2,787
Source: Target Corp., Annual Reports (Stock Analysis on Net, 2012)

Target Corporation also increased their earnings per share for 2011 to $4.28 per share from $4.00 in 2010, diluted. The earnings per share are calculated as; Net Earnings (Income) / Total shares outstanding. Therefore, $2,929 / 683.9 = $4.28 Earnings per share. See “Financial Summary” from Target Corporation 2012. (Stock Analysis on Net, 2012).

Figure 2
Financial Summary Target Corporation
2011201020092008
Revenues$69,865$67,390$65,357$64,948
EBIT$5,322$5,252$4,673$4,402
Net Earnings$2,929$2,920$2,488$2,214
Net Earnings Per Share, Diluted$ 4.28$4.00$ 3.30$ 2.86
Average Common Shares
Outstanding,Diluted683.9729.4754.8773.6
Source: Target Corp., Annual Reports (Stock Analysis on Net, 2012)

With the increase in earnings per share, Target Corporation believes that “adjusted earnings per share, a measure we believe is useful in providing a period-to-period comparisons of the results in our U.S. operations, were $1.49 in the fourth quarter and $4.41 for the full year, representing increases of 8.3 percent and 14.3 percent, respectively” (Target.com, 2012). Furthermore, the Fourth Quarter results were at the higher end of their most current...
tracking img