Target, American Eagle Profits Beat Forecasts

Target Corp. said profit rose 15% to $522 million, or $1.12 a share, in its fiscal fourth quarter, 2 cents better than analyst forecasts, on strength in its discount stores. Sales rose 8.7% to $10.8 billion. Target said it will build 70 discount stores this year and relocate another 10, focusing mainly on the Northeast and mid-Atlantic states. Of the 80 new stores, 15 will be SuperTargets, which also sell groceries. Office supplies retailer OfficeMax Inc. said profit dropped 55% in its fiscal fourth quarter to $19.1 million, or 17 cents a share, matching analysts’ forecasts, on slower computer sales and increased costs for its Internet business. Sales rose 11% to $1.39 billion. American Eagle Outfitters Inc., which sells casual clothes for young adults, said fiscal fourth-quarter profit surged 49% to $37.1 million, or 76 cents a share, well beyond analysts’ expectations of 70 cents, as sales climbed 34% to $285 million. Target shares rose 13 cents to close at $59 on the NYSE. Office Max closed up 56 cents at $7.06, also on the NYSE. Shares of American Eagle, which announced its results after the markets closed, jumped $2.44 to close at $25.50 on Nasdaq.

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