Target profit flat on Canadian launch costs

The Associated Press

Posted: Aug 15, 2012 8:44 AM ET

Last Updated: Aug 15, 2012 1:59 PM ET

Items on sale at a Target store in Daly City, Calif., this month. The company's profits took a hit because of costs related to the chain's upcoming Canadian launch. (Justin Sullivan/Getty)

Target is reporting that net income for the second quarter was unchanged, with results dragged down by the retailer's upcoming move into Canada. Yet customers are again spending money and the cheap chic discounter raised its earnings outlook.

The company posted earnings Wednesday of $704 million, or $1.06 per share in the period ended July 30. That compares with $704 million or $1.03 per share, in the year ago period.

Excluding expenses tied to Canada, Target earned $1.12 per share, which easily topped expectations of $1.01 per share on Wall Street, according to FactSet.

Shares edged higher in premarket trading.

Overall revenue rose 3.5 per cent to $16.45 billion in the quarter and revenue at stores opened at least a year rose 3.1 per cent.

Target Corp. is based in Minneapolis.

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