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MINNEAPOLIS - Target Corp. today reported that earnings surged 27 percent in the second quarter, thanks to strong momentum at its namesake Target discount chain, Reuters reports.
The Minneapolis-based retailer said net income was $344 million, or 38 cents a share, compared with $271 million, or 30 cents a share, a year earlier.
Total revenue, which includes retail sales and net credit revenue, rose 13 percent to $10.07 billion from $8.94 billion, driven by 16 percent growth in revenue from the Target stores.
Sales climbed 11 percent to $9.79 billion, while net credit revenue shot up 89 percent to $277 million. Comparable-store sales, or sales at stores open longer than one year, rose 3 percent.
Target said the company's expense rate, excluding credit-card operations, was "unfavorable" compared to the previous year. Higher expenses were only partly offset by overall growth at Target, the company's lowest expense-rate division. The expense rate represents overhead expenses as a percentage of sales.
Target operates 1,107 Target stores, 264 Mervyn's stores and 64 Marshall Field's stores in 47 states.