Target April Comps Remain Steady

Target Corporation said net retail sales for the four weeks ended May 2, 2009 were $4.45 billion, an increase of 4.5% from $4.25 billion for the four weeks ended May 3, 2008. On this same basis, April comparable-store sales increased 0.3%.

“April sales results were in line with our guidance for the month,” said Gregg Steinhafel, chairman, president and CEO of Target Corporation. “For the first quarter overall, retail segment financial performance was significantly better than expected, and the credit card segment performed in line with our prior guidance. As a result, we expect first quarter earnings per share results to be well above the current median First Call estimate of 52 cents.”

Highlights of expected first quarter financial performance include:

– Comparable-store sales performance modestly above expectation
– Better-than-expected gross margin rate performance, driven by favorable markup and fewer markdowns than expected
– Favorable retail SG&A expense rate performance, driven by continued strong expense controls and timing of recognition of certain items.
– Credit card results in line with prior guidance, including write-offs of approximately $300 million and continued improvement in early-stage delinquencies, resulting in no increase to the allowance for doubtful accounts at quarter-end.