shelter, food needs, and those on welfare. Financial Analysis Target Corporation’s net earnings were $1,144 million in 1999 for the fiscal year ending January of 2000. This compares to $935 million in 1998 and $751 million in 1997 showing a growth in net earnings of 24.5% from 1997-1998 and 22% from 1998-1999. Revenues in 1999 of $33,702 million are primarily generated through the three main segments of Target, Mervyn’s, and Department Stores. Of the three divisions, Target alone generated about 78% of the revenues with $26,080 million in sales. Mervyn’s produced about 12% while the department stores accounted for 9% with sales of $4,099 million and $3,074 million respectively. The revenues from Mervyn’s and the department stores have remained fairly consistent over the last five years with minimal increases from the department stores segment and minimal decreases from Mervyn’s. Inventory levels increased $323 million in 1999, but were fully funded by the $364 million increase in accounts payable over the same period. Basic earnings per share in 1999 were $2.56 resulting in $ .10 of dividends declared per share each quarter in 1999. It was an increase from $2.08 earnings per share in 1998 and a $ .09 dividend declared per quarter. The price of Target Corporation’s common stock ranged from $33.75 to $63.75 in 1998. The total return to shareholders over the past five years averages 43% annually. In 1999 the main expense areas were selling, general, and administrative, which accounted for $7,490 million or 22% of revenues. They increased relative to the 1995-1998 expenses that stayed constant around 16-17%. Capital expenditures are currently a minimal expense on average of 5.56% for the years 1995-1999. In 1999 capital expenditures were $1,918 million. Approximately 69% of the total expenditures were for new stores, expansions, and remodels. Strong cash flow helped reflect a retail debt rati...
