MINNEAPOLIS—Second-quarter net income for Target registered at $679 million, up 14.3 percent from the second quarter of one year ago.
Net sales for the mass-merchant retailer rose 3.8 percent to $15.1 billion, which included a 1.7 percent increase in same-store sales. The company’s bottom line benefited from “thoughtful control of expenses,” said Gregg Steinhafel, Target’s chairman, president and chief executive officer. This manifested itself in a modest 3.1 percent increase in selling, general and administrative expenses, along with 4.6 percent drop in interest expense. Gross margin declined 47 basis points to 33.7 percent.
Steinhafel acknowledged that Target’s second-quarter sales were softer than expected. “Regardless of the pace of recovery, we are well positioned to continue to gain profitable market share,” he said.