Target Corporation (NYSE: TGT), a company that operates Target general merchandise stores with an assortment of general merchandise and food items, has reported a 10 percent gain in fourth-quarter profit, boosted by an improving credit card business and solid holiday sales.
The company reported net income of $1.03 billion, or $1.45 per share for the three months ended January 29. That compares with $936 million, or $1.24 per share, in the same period last year.
Target’s revenue rose 2.4 percent to $20.66 billion. Revenue at stores opened at least a year also rose 2.4 percent.
The company had struggled with weak sales during the early part of the recession but has seen a rebound since 2009. The retailer's expanded food selection has helped bring in more customers.
Target’s business is also benefiting from a discount offer, launched last October that gives a 5 percent discount for shoppers paying with the company's branded credit card or debit card.
The company said that during the latest quarter the average customer's purchase rose only 0.8 percent but more customers came into its stores, fueling a 1.6 percent increase in transactions. Selling price per item fell 2.7 percent.
Within Target’s credit card segment, profit increased to $151 million, compared with $39 million in the year-ago period, as bad debt expense declined to $83 million, from $284 million in the same period last year.
The shares of Target (NYSE: TGT) are trading at $51.36, up 2.19 percent.
