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Target Plans To Close Eight U.S. Stores; Cuts Q4 U.S. Segment Adj. EPS View

Retail giant Target Corp. (TGT: Quote) said Friday that it plans to close eight U.S. stores on May 3, 2014.

The stores affected by this announcement are located in: West Dundee, Ill.; Las Vegas, Nev.; North Las Vegas, Nev.; Duluth, GA; Memphis, Tenn.; Orange Park, Fla.; Middletown, Ohio; and Trotwood, Ohio. Eligible team members at these stores will be offered an opportunity to transfer to a similar position at a nearby Target location, the company said.

In addition, Target announced updates on its continuing investigation into the recent data breach. As part of Target's ongoing forensic investigation, it has been determined that certain guest information -- separate from the payment card data previously disclosed -- was taken during the data breach.

At this time, the investigation has determined that the stolen information includes names, mailing addresses, phone numbers or email addresses for up to 70 million individuals.

Target said it is offering one year of free credit monitoring and identity theft protection to all guests who shopped its U.S. stores. Guests will have three months to enroll in the program. Additional details will be shared next week.

In its U.S. Segment, Target now expects fourth quarter 2013 adjusted earnings per share of $1.20 to $1.30, compared with prior guidance of $1.50 to $1.60. This outlook anticipates a fourth quarter 2013 comparable sales decline of about 2.5%, compared with prior guidance of approximately flat comparable sales.

The company said it is not able to provide an update to its expected fourth quarter 2013 GAAP earnings per share, however, GAAP results are expected to include: (5) to (10) cents of dilution related to store closings), real estate impairments, and similar discrete events; about(45) cents of dilution related to the Company's Canadian Segment, compared with prior guidance of (22) to (32) cents, driven by the gross margin impact of continued efforts to clear excess inventory, and; net dilution of (1) cent due to the expected reduction in the beneficial interest asset related to the sale of its credit card portfolio, partially offset by the resolution of income tax matters.

In addition, fourth quarter 2013 GAAP earnings per share may include charges related to the data breach. The company said the costs may have a material adverse effect on Target's results of operations in fourth quarter 2013 and/or future periods.

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by RTT Staff Writer

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