Target’s December Comps Flat, Slightly Below Plan

Target Corporation reported that its net retail sales
for the five weeks ended Dec. 29, were $10.2 billion, an
increase of 0.8 percent from $10.14 billion a year ago. On this same basis, December comparable-store sales
were essentially flat.

December sales were slightly below our expectations, as strong results
late in the month did not completely offset softness in the first three
weeks,” said Gregg Steinhafel, chairman, president and chief executive
officer of Target Corporation. “Similar to November, profitability for
December benefited from our continued focus on achieving an appropriate
balance between price investments and driving sales, combined with
thoughtful inventory management. As a result, we expect Targets fourth
quarter 2012 earnings per share will meet or somewhat exceed the low end
of our prior guidance. Looking ahead to 2013, we will continue to focus
on profitably growing Targets market share by combining unique
merchandise, convenience, value and an unbeatable guest experience
across our stores, online and mobile channels.

As a reminder, in Targets third quarter 2012 earnings release the
company indicated that it expected fourth quarter 2012 adjusted EPS of
$1.64 to $1.74 and GAAP EPS of $1.45 to $1.55. The 19-cent difference
between these ranges reflected the expected EPS impact of expenses
related to the companys Canadian market entry.