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Target Withdraws Q1, FY20 Outlook, Suspends Share Buyback - Quick Facts

Providing a business update in response to the impact from novel coronavirus (COVID-19), Target Corp. (TGT) announced Wednesday that it is withdrawing its prior guidance for sales, operating income and earnings per share for the first quarter and full year 2020, due to the highly fluid and uncertain outlook for consumer shopping patterns and government policy amid the coronavirus pandemic.

The retailer is also suspending share repurchase activity in the current environment, while it continues to invest in its business and team.

However, the company has been experiencing unusually strong traffic and sales, particularly in its stores and same-day services, as guests rely on Target for essential items like food, medicine, cleaning products and pantry stock-up items as the COVID-19 crisis has evolved.

For the month of February, total Company comparable sales increased 3.8 percent. Month-to-date in March, overall comparable sales are more than 20 percent above last year.

Additionally, the company said it now anticipates about 130 remodels in 2020 under its remodel program, down from the previous expectation of about 300. The company also now expects to open 15-20 new small format stores in 2020, rather than the 36 previously announced. This will allow projects already underway to be completed, and move the remaining projects into 2021.

In addition, the effort to incorporate fresh grocery and adult beverages into the Company's Drive Up and Order Pickup services is temporarily on hold.

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