Target Resumes Stock Buyback

(Target article updated with analyst commentary.)

MINNEAPOLIS (TheStreet) -- Target(TGT) is resuming its $10 billion share repurchase program, in a good sign that the retail sector is improving.

The discounter put the program on pause in November 2008 as the economy tanked amid the recession.

Target CEO Gregg Steinhafel said improving sales and credit-card business prompted management to resume the program. In December, Target posted a 1.8% increase in same-store sales.

By the end of the third quarter of 2009, Target had acquired 95.2 million shares for about $4.9 billion.

The company expects to complete the program in two to three years.

Wall Street Strategies analyst Brian Sozzi said the repurchase program has the potential to boost earnings per share by $1 over the next two years.