BUDGET PRESENTATION

Walmart Budget Presentation



Walmart Budget Presentation

Overview

Target company is performing spectacularly well. Recent accounts have demonstrated stunning numbers and satisfying whole profits. It reported sales of $39.9 billion for the most recent fiscal year, mainly from its 1,100 Target stores, pushing it ahead of Kmart to make Target the nation's second biggest discounter ("Target"). Analysts are impressed with its earnings, which went up 36 per cent, and up to $345 million, in the most recent quarter as revenue increased 15 per cent, to $9.59 billion. Target's share price rose 27 per cent last year, although it is off around 6 per cent this year. By comparison, WalMart's sales in the first quarter rose 14.4 per cent, to $55 billion. Its net income in that period jumped 19.7 per cent, to $1.7 billion ("Walmart's Financial Center").

The Basics of the Budget

Target has earned itself an image with arty distinctive and crafty ads. It is considered that the Target chain is by far the best-performing unit of the parent corporation. In the first quarter, Target stores provided 89 per cent of the company's pretax profit, up from 82 per cent last year. In 2004, 92 per cent of the corporation's capital spending, or $2.9 billion, went to the Target chain. Target executives like to point out that the chain promotes contemporary fashion while it keeps prices low, while WalMart is known for low prices, and low prices only ("Target Stores").

Target's advocating allowance is increasing rapidly. In 2003, it spent $824 million on advertising, up just 4 per cent, or $33 million, from the previous year. But last year, that budget was $924 million which was a 12 per cent jump. Marketing is considered essential to help build Target's persona. The believe in what is called the ''the wow'' for its customers ("Target Stores").

Important Trends ...