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 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.
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.
About Target
Minneapolis-based Target Corporation 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.
