However, this huge expansion hasn’t come cheap. Target Corporation (NYSE:TGT) invested about $1 billion on Canada growth in 2012, and plans an additional $1.5 billion in spending there this year. Target also expects to take another earnings hit from the Canadian ramp up — to the tune of $0.45 a share this year, after a $0.48 loss in 2012.
The good news is that all of those heavy investments should start to pay off around the fourth quarter, when Target Corporation (NYSE:TGT) expects the Canadian business to begin pitching in profits. That’s around the same time that investments in customer engagement will be showing up as higher holiday sales. Target started the year on a down note but could see a strong finish.
The article Target Stock: 2 Big Reasons to Take Another Look originally appeared on Fool.com.
Fool contributor Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Starbucks.
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