NATIONAL: The six months to December 31 2008 have seen discount department stores Target and Kmart battling the economic downturn with varying degrees of success.
Releasing preliminary results yesterday, January 14, a statement from parent company Wesfarmers confirmed "solid sales" for Target. Operating revenue for the period was $2.09 billion, while comparative store-on-store sales growth was 4.0 per cent and earnings before interest and taxes (EBIT) were $215 million.
Meanwhile Kmart continued to focus on improving its long-term performance in what had been a "challenging environment", the statement said. Operating revenue for the period was $2.25 billion, with comparative store-on-store sales growth of 0.4 per cent and EBIT of $75 million.
Managing director Richard Goyder said the preliminary divisional results highlighted the strength of a number of the group's retail businesses including Target, despite the economic downturn.
The figures were however subject to finalisation.
"Given recent share price and interest rate movements and broader market conditions and the impact of those factors on the carrying values of provisions, property and other investments, Wesfarmers believes it is appropriate to provide and early indication of half year results for the group."
The guidance in the update was therefore "preliminary in nature, subject to finalisation within Wesfarmers as well as to review by the company's external auditors."
Final figures for the period will be released on February 19.