Strong Quarter for Target, Home Deport, Saks

The Target Corp. (Minneapolis) reported net income rose almost 29 percent in the first quarter, helped by an improvement in its credit card business and higher sales of more profitable items such as clothing. Ceo Gregg Steinhafel attributes the performance to “disciplined execution by our teams in a stronger-than-expected economic environment.”

The discount retailer reported revenue for the period, which ended May 1, rose 5 percent, while same-store sales increased 2.8 percent.

Home-improvement retailer Home Depot Inc. (Atlanta) has raised its annual profit forecast after first-quarter earnings exceeded analysts’ estimates. The company says earnings grew 41 percent, while same-store sales grew 4.8 percent. For its U.S. division, comparable store sales were up 3.3 percent, marking the first such improvement since the fourth quarter of 2005. During the quarter, Home Depot says the number of customer transaction increased 4.2 percent, but the average sales ticket remained flat.

Rival Lowe’s (Mooresville, N.C.) reported comparable store sales were up 2.4 percent. The Mooresville, North Carolina-based retailer said that consumers remain reluctant to spend because they are concerned about unemployment and declining home prices.

Luxury retailer Saks reported its first-quarter profit of $18.8 million, from a loss of $5.12 million, a year earlier. Sales increased to $667.4 million, while the company forecast full-year comparable sales to rise in the mid-single- digit percentage. “We remain optimistic about the long-term outlook for our company and for the luxury sector as a whole,” says ceo Steve Sadove. “While our first quarter results exceeded our expectations, we still believe the overall environment remains uncertain, and we are approaching the remainder of 2010 with continued caution.”