June Comps Climb 2.3% at Target

Target net retail sales for the five weeks ended July 3, 2004 increased 8.1% to $4.471 billion from $4.135 billion for the five-week period ended July 5, 2003. On this same basis, comparable-store sales increased 2.3% from fiscal June 2003. Total sales from continuing operations increased 8.2% to $4.228 billion, while comparable-store sales from continuing operations rose 2.0% from the same period a year ago.

“Sales for Target Corporation were well below plan for the month of June,” said Bob Ulrich, chairman and chief executive officer of Target Corporation. “Despite our lower-than-expected sales for the month, we remain comfortable that we are likely to achieve second quarter EPS in the range of 46 to 47 cents.” Consistent with our previous guidance, this outlook reflects earnings from both continuing and discontinued operations, and excludes any transaction-related accounting that might occur during the quarter.

                           Sales    Total Sales   Comparable Stores % Change
                        (millions)    % Change       This Year    Last Year
   June
   Target                  $3,888          8.7          2.2          2.4
   Mervyn's                   285          0.8          0.2           na
   Other                       55         11.6           na           na
   Continuing Operations    4,228          8.2          2.0           na
   Discontinued Operations    243          7.6          7.6           na
   Total Corporation        4,471          8.1          2.3          0.8

   Year-to-date
   Target                 $16,754         12.7          5.8          1.4
   Mervyn's                 1,264         (1.4)        (2.0)          na
   Other                      221         16.5           na           na
   Continuing Operations   18,239         11.6          5.2           na
   Discontinued Operations  1,025          4.6          5.5           na
   Total Corporation       19,264         11.2          5.2          0.3