Target Reports Second Quarter 2014 Earnings

Target Corporation (NYSE:TGT) today reported second quarter Adjusted earnings per share 1 of $0.78, a decrease of 20.6 percent from $0.98 per share in 2013, and GAAP earnings per share of $0.37. In addition to operating results, second quarter GAAP earnings per share reflect:
  • Net pre-tax data breach expenses of $111 million, or (11) cents per share 2;
  • Pre-tax early debt retirement losses of $285 million, or (27) cents per share 2;
  • Pre-tax impairment losses on undeveloped U.S. land of $16 million, or (1) cent per share, and;
  • A (1)-cent impact related to the reduction of the beneficial interest asset 2.

The tables attached to this press release provide a reconciliation of non-GAAP to GAAP measures. All earnings per share figures refer to diluted earnings per share.

"While results from the quarter didn’t meet our expectations, we are seeing some early signs of progress as we work to improve results in the U.S. and Canada,” said John Mulligan, executive vice president and chief financial officer of Target Corporation. “In the U.S., traffic trends continue to recover and monthly sales are improving, with July comparable sales up more than 1 percent. Better U.S. sales have continued into August, driven by early back-to-school results. In Canada, the team is making important changes to operations and the merchandise assortment with a focus on delivering improved results by this holiday season.”

“Target is an extraordinary company. I’m excited to join the team as we work to drive U.S. traffic and sales, improve Canadian operations and accelerate Target’s digital transformation,” said Brian Cornell, chairman and chief executive officer of Target Corporation. “In the coming weeks and months I will be focused on listening and learning from Target team members in the U.S. and Canada, and working with the leadership team to develop guest-focused, strategic plans to position Target for long-run success.”

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