Key Retailers Post Mixed Earnings

Discount chain Target Corp. and apparel retailers Limited Inc. and Intimate Brands Inc. reported higher profits for their fiscal fourth quarter, but all three sounded a cautionary note about doing business in the wobbly U.S. economy in 2002.

Target said it would meet or possibly exceed Wall Street estimates of $1.75 a share for 2002 unless the economy weakens significantly; Limited and Intimate Brands forecast flat first-quarter earnings.

Luxury retailers Neiman Marcus Group Inc. and Tiffany & Co. fared worse as consumers cut back on holiday purchases of high-end goods.

Target said earnings rose 19% to $658 million, or 72 cents a share, lifted by recession-wary shoppers looking for value. Sales grew 7.4% to $13.24 billion.

Limited’s net income jumped 37% to $326.5 million, or 75 cents a share, even as sales declined 11% to $3.14 billion. Intimate Brands, which is 84%-owned by Limited, said profit surged 76% to $299.9 million, or 61 cents a share. At Neiman Marcus, earnings dropped 40% to $24 million, or 51 cents a share, as revenue slipped 1.7% to $908 million. Tiffany’s net income was down 2% to $82.7 million, or 55 cents a share, with sales also down 2%, to $565.8 million.