Discount-store operator Target Corp. (TGT) said Tuesday that it now expects adjusted earnings for the first quarter of fiscal 2013 to be lower than its prior outlook range.
The company also projects comparable-store sales growth for the quarter to be approximately flat, citing softer-than-expected sales trends particularly in seasonal and weather-sensitive categories. However, the company maintained its adjusted earnings outlook for fiscal 2013.
The Minneapolis, Minnesota-based retailer now forecasts adjusted earnings per share for the first quarter to be slightly below the low end of its prior guidance range of $1.10 to $1.20. On average, sixteen analysts polled by Thomson Reuters expect the company to report earnings of $0.98 per share for the quarter. Analysts' estimates typically exclude special items.
Target expects first-quarter reported earnings per share to be lower than adjusted earnings per share by about $0.28.
The outlook reflects losses related to the early retirement of debt of about $445 million or $0.41 per share, expected earnings per share dilution related to the Canadian Segment of about $0.23, and net accounting gains of about $0.36 associated with the sale of Target's entire consumer credit card receivables portfolio to TD Bank Group (TD,TD.TO).
In mid-March, Target said it completed the sale of its entire consumer credit card portfolio to TD Bank Group for $5.7 billion, the gross value of the outstanding receivables at the time of closing.
For fiscal 2013, Target continues to expect adjusted earnings in a range of $4.85 to $5.05 per share. Analysts expect the company to report earnings of $4.59 per share for the year.
The company anticipates full-year 2013 reported earnings per share to be about $0.57 lower than adjusted earnings per share.
Beginning with the first quarter of fiscal 2013 ending May 4, 2013, Target will no longer report a U.S. Credit Card Segment and will report two segments - U.S. and Canadian.
Target also provided details on the expected 12-month financial impact of the credit receivables sale and associated debt tender offers on consolidated earnings per share. The company expects a $0.10 per share impact to adjusted earnings per share and a $0.23 per share impact for the twelve-month period.
In late February, Target reported a 2 percent decline in profit for the fourth quarter, reflecting higher provision for income taxes and expenses related to the company's entry into the Canadian market.
The company's fourth-quarter net earnings were $961 million, down from $981 million in the prior-year quarter. However, earnings per share edged up to $1.47 from $1.45 in the prior year on lower share count. Total revenues for the quarter increased 7 percent to $22.73 billion from $21.29 billion in the same period last year.
In Tuesday's regular session, TGT is trading at $68.00, down $0.48 or 0.70 percent on a volume of 927,119 shares.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.