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Target Revenue and Profitability Performance Paper

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Running head: TARGET’S PERFORMANCE 1
Target’s revenue and profitability performance
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TARGET’S REVENUE AND PROFITABILITY PERFORMANCE 2
Target’s revenue and profitability performance
Target Corporation is a retail giant that sells a variety of products through its physical
stores and digital channels. Its products include grocery, perishables, apparel, and household
products among others. Target has been struggling to improve its sales revenue and profitability
and here is its performance in recent years.
The performance of Target Corporation has improved in the year 2017. According to
CNBC, Target’s net income increased from $632 ($1.05 per share) million to $681 million -
$1.23 per share (Thomas, 2017). Though sales revenue declined, the performance was beyond
analysts’ expectations. Target CEO, Brian Cornell, confirmed that the company recorded ‘strong
execution’ in a hostile environment. This statement indicates a strong turnaround event for the
company since it has been having disappointing performance in recent years.
Performance in The year 2015
Target’s 2015 performance was an improvement of the year 2014. The Target 2015
Annual Report highlighted several reasons that would make the giant retailer go down if they are
not worked on. Responding to dramatic change in customer preferences was the biggest
challenge. The report notes that “Failure to obtain accurate and relevant data on guest
preferences, predict changing consumer tastes, preferences, spending patterns and other lifestyle
decisions, emphasize the correct categories, implement effective promotions, and personalize our
offerings to our guests may result in lost sales, spoilage, and increased inventory markdowns,
which would lead to a deterioration in our results of operations by hurting our sales, gross
margins, and profitability” (Target 2015 Annual Report).
Secondly, the company had to invest in technology to have a secure digital platform to
offer products. After the 2013 security breach, Target had to restructure its information system to

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Running head: TARGET’S PERFORMANCE Target’s revenue and profitability performance Student Name Institution Affiliation 1 TARGET’S REVENUE AND PROFITABILITY PERFORMANCE 2 Target’s revenue and profitability performance Target Corporation is a retail giant that sells a variety of products through its physical stores and digital channels. Its products include grocery, perishables, apparel, and household products among others. Target has been struggling to improve its sales revenue and profitability and here is its performance in recent years. The performance of Target Corporation has improved in the year 2017. According to CNBC, Target’s net income increased from $632 ($1.05 per share) million to $681 million $1.23 per share (Thomas, 2017). Though sales revenue declined, the performance was beyond analysts’ expectations. Target CEO, Brian Cornell, confirmed that the company recorded ‘strong execution’ in a hostile environment. This statement indicates a strong turnaround event for the company since it has been having disappointing performance in recent years. Performance in The year 2015 Target’s 2015 performance was an improvement of the year 2014. The Target 2 ...
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