Target, Staples, BJ's Post Strong Results

While retailers continue to be jumpy about consumer spending in the months ahead, many are posting solid second quarter results. Target, Staples, and BJ's Wholesale Club were among those putting up strong numbers, as were smaller chains, including Chicos and Abercrombie & Fitch.

Target's net earnings rose 3.7% to $704 million for the quarter, compared with $679 million in the same period a year ago, while sales rose 5.1% to $15.9 billion, including a 3.9% increase in same-store sales. "We're very pleased with our second quarter financial results, which benefited from an acceleration in the pace of our comparable-store sales growth," says Gregg Steinhafel, chairman, president, and CEO, in its release. Staples says its sales rose 5.2% to $5.8 billion in the second quarter, while net income rose 36% to $176 million. "Our core business is solid, our growth initiatives are building momentum, and we delivered better than expected earnings and cash flows," says Ron Sargent, Staples' chairman/CEO.

And BJ's Wholesale Club also turned in numbers that beat expectations, with net income rising to $45.7 million, from $42.5 million in the same period last year. Sales gained by 11% to $2.98 billion, with comparable club sales rising 7.8%, including a contribution from sales of gasoline of 4%. (Excluding the impact of rising gas prices, comparable club sales increased by 3.8%.)

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