Summary
Target Corporation's 2007 10-K report, filed in March 2008, reflects a period of slower sales and earnings growth compared to recent years. Net earnings increased by 2.2% to $2.849 billion, and diluted earnings per share rose by 3.9% to $3.33. Total revenues grew by 6.2%, with comparable-store sales increasing by 3.0%. The company continued to invest in expansion, opening 118 new stores. Target's credit card operations, REDcards, remained a significant contributor to profitability, with credit card revenues increasing by 17.6% and contributing $600 million to earnings before taxes. Financially, Target maintained a strong position, generating $4.125 billion in cash flow from operations. The company continued its robust share repurchase program, investing $2.642 billion in buybacks during the year, and also maintained its dividend payments, signaling a commitment to returning value to shareholders. Management anticipates continued growth in 2008, projecting total revenue growth in the 8-9% range, supported by new store openings and expected comparable-store sales increases. The company's strategic focus remains on enhancing the guest experience, supported by its supply chain and technology infrastructure.
Financial Highlights
29 data points| Revenue | $63.37B |
| Cost of Revenue | $42.93B |
| Gross Profit | $20.44B |
| SG&A Expenses | $12.67B |
| Interest Expense | $647.00M |
| Net Income | $2.85B |
| EPS (Basic) | $3.37 |
| EPS (Diluted) | $3.33 |
| Shares Outstanding (Basic) | 845.40M |
| Shares Outstanding (Diluted) | 850.80M |
Key Highlights
- 1Fiscal year 2007 saw slower sales and earnings growth, with net earnings up 2.2% to $2.849 billion and diluted EPS up 3.9% to $3.33.
- 2Total revenues increased by 6.2% to $63.4 billion, driven by new store openings and a 3.0% comparable-store sales growth.
- 3Credit card operations (REDcards) contributed significantly, with revenues up 17.6% to $1.9 billion and EBT contribution of $600 million.
- 4Generated strong operating cash flow of $4.125 billion.
- 5Continued aggressive share repurchase program, repurchasing $2.642 billion of common stock.
- 6Announced plans for continued expansion in fiscal year 2008, expecting 8-9% total revenue growth with comparable-store sales increasing by 2-3%.
- 7The company operates as a single business segment and has a substantial physical footprint with 1,591 stores across the U.S.