US retailer Target reports better-than-expected profits

http://www.bbc.co.uk/news/business-32811358

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US retail giant Target has reported a 52% increase in quarterly earnings to $635m (£409m), helped by a boost from online sales.

The results, which beat forecasts, were also helped by strong sales of clothing and children's products.

Target said it had been concentrating on a narrower product range in "signature categories".

The retailer, which has been seeking to cut costs this year, also raised its profit guidance for the full-year.

It now expects adjusted earnings of $4.50 to $4.65 a share, compared with an earlier forecast of $4.45 to $4.65.

Chief executive Brian Cornell said: "We're encouraged to see early progress on our strategic priorities, including strong sales growth in apparel, home and beauty, nearly 40 percent growth in digital sales, and positive traffic in both our stores and digital channels."

The company is still paying for a massive breach of customer data in December 2013, when up to 70 million customers had payment card and personal data stolen from the its databases.

Altogether, the breach has cost the company $166m, and it cost a further $3m in the first quarter of 2015.

As part of its cost cutting plans, in March the retailer outlined plans to shed several thousand jobs over the next several years.

In January, Target announced that it was pulling out of the Canadian market with a $5.4bn loss.