Target Corporation reported that net retail sales for the month of October increased 11.6% to $3.694 billion from $3.311 billion last year. Comparable-store sales increased 5.7% for the month. The sales plan for the month originally called for a comparable-store increase in the range of 3% to 5%.
“We are pleased with our same-store sales in October, which were slightly above our planned range,” said Bob Ulrich, chairman and chief executive officer of Target Corporation.
Continuing Operations Sales Total Sales Comparable Stores % Change (millions) % Change This Year Last Year October $3,694 11.6 5.7 6.0 Third Quarter $11,863 11.7 5.9 4.5 Year-to-Date $34,701 12.6 6.3 5.2
Separately, the company also confirmed that it will receive at least $27 million as its ultimate share of proceeds from the $3 billion Visa/MasterCard antitrust litigation settlement. The company had previously disclosed that it expected greater clarity on this issue during the second half of 2005. No related gain and receivable had been recorded in any prior period.
“This non-recurring litigation benefit of approximately 2 cents per share heightens the effects of Target's strong sales momentum and robust gross margin rate expansion on third quarter earnings growth,” Ulrich continued. “When combined with our more modest outlook for earnings growth in the fourth quarter, this exceptional third quarter performance reinforces our confidence in our ability to deliver $1.50, or more, in diluted EPS in this year's second half.”