Target Q4 Down, Full-year Earnings Up26 Feb, 2008 By: Chris Tribbey
Electronics sold well for Target Corp. during 2007, but it wasn't enough to offset poor sales in toys, men's clothes and jewelry for the big-box retailer, executives said in a fourth-quarter and full-year earnings call Feb. 26.
And while Target, like every other electronics seller, is transitioning from analog to digital TVs, company executives cautioned that better TVs will not necessarily mean better sales.
“Essentially this is a conversion from analog to digital technology … the gross margin differential in both the analog and flat-panel LCD [and] plasma technology is about the same when you fully allocate all the expenses and the competitive position of the marketplace,” said Target president Gregg Steinhafel.
The retailer reported fourth-quarter earnings (ended Feb. 2) of a little more than $1 billion, down from more than $1.1 billion during the same period last year. For the year, Target reported net earnings of nearly $2.9 billion, up slightly over 2006 ($2.8 billion).