Company Announces Change to Sales Reporting Policy
Target Corporation (NYSE:TGT) today reported that its net retail sales for the five weeks ended September 29, 2012 were $6,075 million, an increase of 2.6 percent from $5,923 million for the five weeks ended October 1, 2011. On this same basis, September comparable-store sales increased 2.1 percent.
"Target's comparable-store sales performance in September was in line with our guidance for the month," said Gregg Steinhafel, chairman, president and chief executive officer of Target Corporation. "We're pleased with our sales results through the first two months of the quarter and believe we remain on-track to attain our third-quarter sales and profit goals."
| Sales (millions) | Total Sales % Change | Comparable Stores % Change This Year | Comparable Stores % Change Last Year | |
|---|---|---|---|---|
| September | $6,075 | 2.6 | 2.1 | 5.3 |
| Quarter-to-date | $11,618 | 3.6 | 3.1 | 4.7 |
| Year-to-date | $44,607 | 4.5 | 3.9 | 3.4 |
In its second quarter 2012 earnings release Target indicated that in third quarter 2012 it expected adjusted EPS of $0.83 to $0.93 and GAAP EPS of $0.69 to $0.79. The 14-cent difference between the GAAP and adjusted EPS ranges represented the expected EPS impact of expenses related to the company’s Canadian market entry.
The company now believes that, due to the favorable resolution of income tax matters, the difference between its third quarter 2012 adjusted EPS and GAAP EPS may be somewhat narrower than the 14 cents specified in its second quarter earnings release.
The company also announced today that beginning with its 2013 fiscal year it will no longer report monthly sales. ―This decision is based on discussions with many of our investors and is consistent with the practice of the vast majority of our retail peers,‖ said John Mulligan, executive vice president and chief financial officer of Target Corporation. ―We believe aligning our sales guidance and reporting with disclosure of our quarterly financial results will create a longer-term focus and provide greater understanding of our sales results in the context of our overall financial performance.
Miscellaneous
Target’s current sales disclosure practice includes a sales recording on the day of the monthly sales release. Consistent with this practice, a new message was recorded earlier today. The next sales recording is expected to be issued on Thursday, November 1, 2012. These recordings may be accessed by calling 866-526-7639. Text versions of our recordings are available on our Investor Relations website, www.target.com/investors, by clicking on ―Financial News and then ―Monthly Sales Summaries. The company has announced that it will no longer report monthly sales beginning with its 2013 fiscal year.
Statements in this release related to expected sales and earnings performance 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 January 28, 2012 and Form 10-Q for the fiscal quarter ended July 28, 2012.
About Target
Minneapolis-based Target Corporation (NYSE:TGT) serves guests at 1,772 stores across the United States and at Target.com. The company plans to open its first stores in Canada in 2013. In addition, the company operates a credit card segment that offers branded proprietary credit card products. Since 1946, Target has given 5 percent of its profit through community grants and programs; today, that giving equals more than $3 million a week. For more information about Target’s commitment to corporate responsibility, visit Target.com/hereforgood.
For more information, visit Target.com/Pressroom.