Target Provides Updated First Quarter and Full-Year 2013 Guidance Following Settlement of Debt Tender Offers

Minneapolis, MN - -Following the settlement of its debt tender offers, and in keeping with the company’s intention to provide an update as stated in its March 13, 2013 announcement regarding completion of its credit card portfolio sale, Target Corporation (NYSE:TGT) today provided updated guidance for its first quarter sales as well as its first quarter and full-year 2013 adjusted and GAAP earnings per share. All earnings per share figures refer to diluted earnings per share.

The company now expects its first quarter 2013 comparable-store sales growth will be approximately flat, due to softer-than-expected sales trends particularly in seasonal and weather-sensitive categories across the store. As a result, Target expects its first quarter adjusted EPS will be slightly below the low end of the prior guidance of $1.10 to $1.20. Target expects first quarter GAAP EPS to be approximately 28 cents lower than adjusted EPS, due to:

-Losses, recognized in interest expense, related to the early retirement of debt of approximately $445 million, or (41) cents per share;
-Expected EPS dilution related to the Canadian Segment of approximately (23) cents, and;
-Net accounting gains of approximately 36 cents associated with the sale of Target’s entire consumer credit card receivables portfolio to TD Bank Group.

For fiscal 2013, Target continues to expect adjusted EPS consistent with the previous guidance of $4.85 to $5.05. The company expects full-year 2013 GAAP EPS to be approximately 57 cents lower than adjusted EPS due to:

-Losses, recognized in interest expense, related to the early retirement of debt of approximately $445 million, or (41) cents per share;
-Expected EPS dilution related to the Canadian Segment of approximately (45) cents, and;
-Net accounting gains of approximately 29 cents associated with the sale of Target’s entire consumer credit card receivables portfolio to TD Bank Group.

Today Target posted additional information on the impact of the sale of its consumer credit card receivables portfolio and related debt tender offers on its investor relations website at Target.com/investors, including:

-Detail on the expected 12-month financial impact of the credit receivables sale and associated debt tender offers on Target’s consolidated earnings per share, and;
-Restated quarterly segment reporting for fiscal years 2010, 2011 and 2012, in which the former U.S. Retail Segment and U.S. Credit Card segment have been combined into a single U.S. Segment.

Miscellaneous

Target Corporation expects to release first quarter earnings on May 22, 2013. Details about the release will become available through the Company’s website at Target.com/investors (click on “events & presentations”). Additional information related to the closing of Target’s credit card portfolio transaction with TD Bank or the debt tender offers are contained in their respective press releases, which are also located on the Company’s investor relations website.

Statements in this release regarding first quarter and full-year 2013 earnings guidance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements speak only as of the date they are made and are subject to risks and uncertainties which could cause the Company’s actual results to differ materially. The most important risks and uncertainties are described in Item 1A of the Company’s Form 10-K for the fiscal year ended February 2, 2013.

In addition to the GAAP earnings per share estimates provided in this release, the Company provides adjusted diluted earnings per share for the first quarter and full-year 2013. This measure is not in accordance with, or an alternative for, generally accepted accounting principles in the United States. The most comparable GAAP measure is diluted earnings per share. Management believes adjusted EPS is useful in providing period-to-period comparisons of the results of the Company’s U.S. operations. Adjusted EPS should not be considered in isolation or as a substitution for analysis of the Company’s results as reported under GAAP. Other companies may calculate adjusted EPS differently than the Company does, limiting the usefulness of the measure for comparisons with other companies.

About Target

Minneapolis-based Target Corporation (NYSE: TGT) serves guests at 1,808 stores – 1,784 in the United States and 24 in Canada – and at Target.com. Since 1946, Target has given 5 percent of its profit through community grants and programs; today, that giving equals more than $4 million a week. For more information about Target’s commitment to corporate responsibility, visit Target.com/corporateresponsibility.

For more information, visit Target.com/Pressroom.