Daily Archives: February 27, 2014

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The Retail Industry Leaders Association’s statement at the close of the Trans-Pacific Partnership (TPP) Ministerial meeting in Singapore

Arlington , VA, 2014-2-27 — /EPR Retail News/ — The Retail Industry Leaders Association issued the following statement at the close of the Trans-Pacific Partnership (TPP) Ministerial meeting in Singapore. RILA’s vice president for international trade was in Singapore for the talks with the twelve countries, meeting with negotiators and other stakeholders.

“Immediate duty-free market access for apparel is a priority for retailers in the TPP. Duty-free market access would benefit hard-working American families, both in billions of dollars in duty savings and in supporting millions of American jobs that are part of the apparel global value chains,” emphasized Stephanie Lester, RILA’s vice president for international trade.

“It is clear that the TPP countries have a shared goal to conclude the TPP. Ambitious and comprehensive market access is key to a successful outcome. We look to all countries to offer comprehensive market access liberalization,” continued Lester. “We also urge Congress to renew trade promotion authority as quickly as possible to facilitate a robust trade agenda.”

The TPP is a prospective regional free trade agreement (FTA) between the United States and Australia, Brunei, Canada, Chile, Japan, Mexico, Malaysia, New Zealand, Peru, Singapore, and Vietnam. “It is estimated that a successful TPP agreement would boost global income by $295 billion a year, with $78 billion of that accruing to the United States,” Lester concluded, citing a study by the Peterson Institute.

Economic studies establish that 70 percent of the retail value of apparel imported into the United States is generated in the United States by American workers.  This translates into 3 million good-paying U.S. jobs that would benefit from a robust TPP agreement that provides immediate duty-free market access for qualifying goods.

RILA reiterates its support for a 21st Century TPP agreement that generates new trade and investment opportunities in all sectors for the benefit of American workers, businesses, and families. These opportunities include buying and selling goods and services, sustaining and growing well-paying U.S jobs, and providing high added value for the U.S. and TPP economies.

RILA supports the renewal of Trade Promotion Authority (TPA), also known as the Trade Priorities Act, to establish Congressional priorities and consultation procedures for international trade agreements. TPA provides trade policy direction to the president, and allows the President to pursue free trade agreements that create new trade and investment opportunities. Every U.S. President should have this authority.

RILA is the trade association of the world’s largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.

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Allie Brandenburger
Director, Communications
Phone: 703-600-2063
Email: allie.brandenburger@rila.org

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National Retail Federation’s CEO Matthew Shay comments on JPMorgan Chase & Co’s PIN and Chip credit cards announcement

WASHINGTON, DC, 2014-2-27 — /EPR Retail News/ — The National Retail Federation issued the following statement from President and CEO Matthew Shay in response to the announcement by JPMorgan Chase & Co. that the bank will issue its Europay MasterCard Visa credit cards as PIN and Chip cards. The bank has previously issued the cards only as chip-and-signature.

“Use of a PIN is absolutely essential to providing merchants and their customers with the full extent of protection available from chip-based cards. The chip authenticates that a card isn’t a counterfeit but it’s the PIN that ensures the card is being used by its actual owner and not a thief scrawling an illegible signature. Chip-and-signature cards just don’t offer the level of protection needed to help stop criminal hackers from making money off payment card data. NRF has encouraged uniform use of PIN and Chip for years, and urged Chase in recent meetings to make full use of the double layer of protection these cards offer. We’re pleased that they have seen the advantage of doing that and hope Chase will issue all of its new cards as PIN and Chip. The networks and issuing banks should follow their lead and do the same.”

NRF is the world’s largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet retailers from the United States and more than 45 countries. Retail is the nation’s largest private sector employer, supporting one in four U.S. jobs – 42 million working Americans. Contributing $2.5 trillion to annual GDP, retail is a daily barometer for the nation’s economy. NRF’s This is Retail campaign highlights the industry’s opportunities for life-long careers, how retailers strengthen communities, and the critical role that retail plays in driving innovation. www.nrf.com

Contact: J. Craig Shearman or Bethany Aronhalt (855) NRF-PRESS
press@nrf.com 

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Delhaize Group to divest its Bulgarian operations to AP Mart

BRUSSELS, Belgium, 2014-2-27 — /EPR Retail News/ — Delhaize Group (Euronext Brussels: DELB, NYSE: DEG), the Belgian international food retailer, announces that it has signed today an agreement with AP Mart on the sale of its Bulgarian operations.

Delhaize Group has signed an agreement with AP Mart, which is in process of registration, to divest its Bulgarian operations. The transaction is expected to complete in the second quarter subject to regulatory approval as well customary closing conditions and working capital adjustments.

Delhaize Group
Delhaize Group is a Belgian international food retailer present in nine countries on three continents. At the end of 2013, Delhaize Group’s sales network consisted of 3 534 stores. In 2013, Delhaize Group posted €21.1 billion ($28.0 billion) in revenues. In 2012, Delhaize Group posted €104 million ($134 million) in net profit (Group share). At the end of 2012, Delhaize Group employed approximately 158 000 people. Delhaize Group’s stock is listed on NYSE Euronext Brussels (DELB) and the New York Stock Exchange (DEG).

This press release is available in English, French and Dutch. You can also find it on the website http://www.delhaizegroup.com. Questions can be sent to investor@delhaizegroup.com.

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Indonesia: PT Matahari Putra Prima Tbk reported revenue up 16.2% and net earnings up 115% in 2013

MPPA FULL YEAR 2013 RESULTS:
REVENUE UP 16.2%
NET EARNINGS UP 115.0%
Proforma

Highlights:

·         Full year gross sales of Rp12,564 billion, 16.2% over 2012

·         Full year same store sales growth (SSSG) of 4.5%

·         Matahari Food Business (MFB) opened a record 39 new stores in 2013, and now operates a total of 222 multi format stores

Jakarta, Indonesia, 2014-2-27 — /EPR Retail News/ — PT Matahari Putra Prima Tbk reported strong results in the full year 2013. Gross sales were Rp12,564 billion, a 11.1% increase over last year, with a 85.8% growth in net income to Rp445, as compared to Rp239 billion last year.

Matahari Food Business (MFB) gross sales were Rp12,564 billion, an increase of 16.2%. On a pro forma basis MFB net income increased 115.0% to Rp445 billion from Rp207 billion.

The full year SSSG of 4.5% in 2013 (Q4 SSSG was 5.6%) reflected the continued strong demand from the company’s target middle income segment, despite changes in the macroeconomic environment.

MPPA currently operates 222 stores (99 Hypermart, 29 Foodmart and 94 Boston Health & Beauty) in 63 cities across Indonesia. MFB continued the aggressive expansion and opened a total of 39 new stores in 2013, (19 Hypermart, 3 Foodmart and 17 Boston Health & Beauty). At the end of the year the total gross retail space increased to 648,215.

Total debt as of December 31, 2013 was Rp 188 billion, payable in April 2014. The Company continues to support the expansion of new stores with internal cash flow.

Bunjamin Mailool, President Director of the Company said, “We are pleased with the results of 2013. We’ve successfully executed the strategic direction recommended by Merrill Lynch, which enabled management to focus on the Matahari Food Business. MFB continues to be the market leader, gaining market share in the modern retail grocery segment and is a first mover in new markets. As a dominate player in existing markets, MFB is well positioned to continue to support the strong growth projected for Indonesia’s economy”.

About PT Matahari Putra Prima, Tbk
MPPA has the widest geographic coverage and is the fastest growing fast-moving consumer goods modern multi-format food retailer in Indonesia and operates retail stores under the brands of Hypermart, Foodmart, and Boston Health & Beauty. Matahari Food Business works closely with small and medium enterprise companies for local sourcing to provide value, quality and healthy selections to the growing middle class family. MFB operates a total of 222 retail stores.

For further information, please contact:

Investor Relations:
Danny Crayton, Chief of Investor Relations
danny.crayton@hypermart.co.id

Mobile: +628118801534

Corporate Communications:
Danny Kojongian, Director
danny.kojongian@hypermart.co.id

Mobile: +628161376868

This press release has been prepared by PT Matahari Putra Prima Tbk (“MPPA”) and is circulated for the purpose of general information only. It is not intended for any specific person or purpose and does not constitute a recommendation regarding the securities of MPPA.  No warranty (expressed or implied) is made to the accuracy or completeness of the information. All opinions and estimations included in this release constitute our judgment as of this date and are subject to change without prior notice. MPPA disclaims any responsibility or liability whatsoever arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part of the contents of this press release and neither MPPA nor any of its affiliated companies and their respective employees and agents accepts liability for any errors, omissions, negligent or otherwise, in this press release and any inaccuracy herein or omission here from which might otherwise arise.

Forward-Looking Statements

Certain statements in this release are or may be forward- looking statements.  These statements typically contain words such as “will”, “expects” and “anticipates” and words of similar import.  By their nature, forward looking statements involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release. Factors that could cause actual results to differ include, but are not limited to, economic, social and political conditions in Indonesia; the state of the property industry in Indonesia; prevailing market conditions; increases in regulatory burdens in Indonesia, including environmental regulations and compliance costs; fluctuations in foreign currency exchange rates; interest rate trends, cost of capital and capital availability; the anticipated demand and selling prices for our developments and related capital expenditures and investments; the cost of construction; availability of real estate property; competition from other companies and venues; shifts in customer demands; changes in operation expenses, including employee wages, benefits and training, governmental and public policy changes; our ability to be and remain competitive; our financial condition, business strategy as well as the plans and objectives of our management for future operations; generation of future receivables; and environmental compliance and remediation. Should one or more of these uncertainties or risks, among others, materialize; actual results may vary materially from those estimated, anticipated or projected. Specifically, but without limitation, capital costs could increase, projects could be delayed and anticipated improvements in production, capacity or performance might not be fully realized. Although we believe that the expectations of our management as reflected by such forward-looking statements are reasonable based on information currently available to us, no assurances can be given that such expectations will prove to have been correct. You should not unduly rely on such statements. In any event, these statements speak only as of the date hereof, and we undertake no obligation to update or revise any of them, whether as a result of new information, future events or otherwise.

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National Nutrition Month: ShopRite of Uniondale to host book signing by certified diabetes educator Susan Weiner

Author Susan Weiner, RDN launches new release, The Complete Diabetes Organizer

Uniondale, NY, 2014-2-27 — /EPR Retail News/ — In lieu of March, National Nutrition Month, the ShopRite of Uniondale is hosting a book signing by certified diabetes educator Susan Weiner, Registered Dietitian Nutritionist on Saturday, March 1 from 11a.m.-3 p.m..  The Complete Diabetes Organizer, written by Ms. Weiner and professional organizer Leslie Joel, will be available to customers at $20 a copy (cash only).  A limited number of $5 off coupons will be available to customers while supplies last.

Ms. Weiner’s book offers diabetics stress-free solutions to maintain and manage their diabetes.  While Ms. Weiner greets customers and signs books, ShopRite’s in-store dietitian, Shauna Del Prete, RD, will conduct brief diabetes store tours and sample diabetic friendly products.

A full listing of ShopRite events to celebrate National Nutrition Month events, can be found at http://www.shoprite.com/health-events/.

In 2006 ShopRite took the initiative to implement a unique health and wellness program to help its customers eat well and live a healthy lifestyle. ShopRite’s Retail Dietitian program has grown since then to include more than eighty in-store Registered Dietitians who provide their services to ShopRite customers completely free of charge.

As part of ShopRite’s commitment to helping its customers live healthier lives, an on-site registered dietitian is made available in select stores on a daily basis for customer consultation. Customers can take advantage of these services, which include, but are not limited to, personal nutrition, special diets for specific medical conditions, healthy alternatives in your favorite recipes, smarter shopping for healthier living and implementing more nutritious foods into everyday meals. Best of all, these services are free of charge!

WHEN:           Saturday, March 1, 11AM-3PM

WHERE:         ShopRite of Uniondale
1121 Jerusalem Ave
Uniondale, New York 11553

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About ShopRite 
ShopRite is the registered trademark of Wakefern Food Corp., a retailer-owned cooperative based in Keasbey, NJ,  and the largest supermarket cooperative in the United States.  With more than 250 ShopRite supermarkets located throughout New Jersey, New York, Pennsylvania, Connecticut, Delaware and Maryland, ShopRite serves more than six million customers each week.  A long-time supporter of key community efforts, ShopRite is dedicated to fighting hunger in the communities it serves.  Through its ShopRite Partners In Caring program, ShopRite has donated $33 million to 1,700 worthy charities and food banks since the program began in 1999.  As a title sponsor of the LPGA’s ShopRite Classic, ShopRite has raised more than $27 million for local organizations, hospitals and community groups.  Progressive Grocer named ShopRite its 2011 Retailer of the Year and Supermarket News awarded ShopRite its 2011 Retail Excellence Award.

For more information, please visit www.ShopRite.com.

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Harris Teeter to help raise funds for Muscular Dystrophy Association (MDA)

Help MDA this March in the Fight Against Neuromuscular Disease

Matthews, N.C., 2014-2-27 — /EPR Retail News/ — Harris Teeter is pleased to announce a partnership with the Muscular Dystrophy Association (MDA) to help the non-profit health agency raise funding to continue its mission of finding treatments and cures for neuromuscular diseases.

March 1 – March 31, Harris Teeter associates in all Harris Teeter and 201central stores will sell $1, $3 and $5 “Make a Muscle” donation cards.  Sales of the donation cards will directly benefit MDA in your community.

“MDA is grateful for our long standing partnership with Harris Teeter and is looking forward to the 2014 campaign,” said Theresa Miller, divisional director for MDA. “Through the generosity of Harris Teeter associates and customers, MDA is able to fund local comprehensive health care services, as well as move forward in our quest for a cure.”

Did you know:

  • MDA spends $65 a minute, every minute of the year, supporting more than 250 research projects worldwide searching for treatments and cures for the more than 40 diseases in its program;
  • MDA has the most comprehensive program of any voluntary health agency in the country, providing services through 120 local offices in the United States and Puerto Rico; and
  • MDA has been designated a “Top-Rated Charity” by the American Institute of Philanthropy and has earned the right to display the Better Business Bureau Accredited Charity seal.

There are many ways to help MDA in the fight against neuromuscular disease.  Please consider contributing financially at your local Harris Teeter or raising awareness for the MDA on your social media pages.

EASY TWEET:  Fight back against muscle disease. Support @MDAnews @harristeeter Go to [insert link to landing page] #MakeAMuscle

EASY TWEET: I supported @MDAnews today @Harris Teeter #MakeAMuscle

Click here for a Campaign poster and click here to watch a copy of a video announcing the launch of the Muscular Dystrophy Association Donation Card Campaign at Harris Teeter.

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Harris Teeter rewarded its Week 4 Winners of $100,000 Giveaway

Six Weeks, $60,000 in Prizes Remain

Matthews, N.C., 2014-2-27 — /EPR Retail News/ — Last Saturday, Feb. 22, 2014, as part of Harris Teeter’s Together in Education (TIE) $100,000 Giveaway, Harris Teeter’s TIE Prize Patrol visited homes in Winston Salem, N.C. to reward our Week 4 winners. Shannon Reed won $2,950 for herself and $2,950 for Paisley Magnet School while Jeffery England won $1,550 for himself and $1,550 for Morgan Elementary School. Bonnie Smith and Sandra Lahaie each won $500 to be split between themselves and their TIE school.

During the $100,000 Giveaway, a winner (“Weekly Contestant”) is randomly drawn every Wednesday between Jan. 22, 2014 and April 1, 2014.  Harris Teeter’s TIE Prize Patrol surprises the Weekly Contestant at home the following Saturday.  The Prize Patrol awards the Weekly Contestant and the TIE school to which the contestant’s VIC card is linked with $250 for being selected, and then searches the home for Harris Teeter Brand products.  For every Harris Teeter Brand product found, the Weekly Contestant and the TIE school to which the contestant’s VIC card is linked each earn $50. The total maximum donation each weekend is $10,000. If the $10,000 is not entirely spent at the first Weekly Contestant’s home, the Prize Patrol will move on to other Weekly Contestants’ homes until the full $10,000 is awarded for the day.

As part of the TIE $100,000 Giveaway, Harris Teeter will also select and advertise a Bonus Item each week.  If the Bonus Item is found in the Weekly Contestant’s home, the Weekly Contestant and the TIE school will each earn $250.

The Week 4 Bonus Item was Harris Teeter pasta and was found in both Reed’s home and England’s home; the Week 5 Bonus Item is Fresh Foods Market Soup.

 

Weekly Contestant TIE School HT Brands Total Prize
David Brown (Week 1)  Carrboro High School PTSA  91*  $10,000
The Parada Family (Week 2)  South Mecklenburg High School Lacrosse  95  $10,000
Kelly Turner (Week 3)  Covenant Day School   39  $4,400
Andrew Cudahy (Week 3)  Butler High School  51  $5,600
Shannon Reed (Week 4)  Paisley Magnet School  50*  $5,900
Jeffery England (Week 4)  Morgan Elementary School 22* $3,100
Bonnie Smith (Week 4)  North Hills Elementary NA $500
Sandra Lahaie (Week 4)  Hanes Middle School NA $500

*Including Bonus Item

Six weeks remain in the contest; be sure your VIC card is linked to a TIE school for a chance to participate in the $100,000 Giveaway.

 

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Target Corporation reported Q4 and full-year net earnings $520 million and $1,971 million respectively

Fourth quarter Adjusted EPS of $1.30; full-year Adjusted EPS of $4.38. Fourth quarter GAAP EPS of $0.81; full-year GAAP EPS of $3.07

  • Target’s U.S. operations generated fourth quarter Adjusted earnings per share of $1.30, at the high end of the updated guidance provided in January.
  • Canadian Segment dilution of (40) cents in the fourth quarter compares with prior guidance of approximately (45) cents.
  • Target’s full-year 2013 Adjusted earnings per share of $4.38 reflect disciplined inventory and expense management despite softer-than-expected U.S. sales.
  • In 2013, the Company returned $2.5 billion to shareholders through dividends and share repurchase, representing more than 125 percent of net earnings.
  • Target’s U.S. comparable sales decreased (2.5)% in the fourth quarter, consistent with prior guidance, driven by positive comparable sales prior to our December 19 announcement of a data breach, followed by meaningfully softer results following the announcement.

Minneapolis, MN, 2014-2-27 — /EPR Retail News/ — Target Corporation (NYSE: TGT) today reported fourth quarter net earnings of $520 million, or $0.81 per share, and full-year net earnings of $1,971 million, or $3.07 per share. Dilution related to the Canadian Segment affected fourth quarter and full-year GAAP EPS by (40) cents and $(1.13), respectively. Adjusted earnings per share1 were $1.30 in fourth quarter 2013, down 21.2 percent from $1.65 in 2012. Full-year 2013 Adjusted EPS of $4.38 was down 8.0 percent from $4.76 in 2012. 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.

“For more than 50 years Target has succeeded by focusing on our guests,” said Gregg Steinhafel, chairman, president and chief executive officer of Target Corporation. “During the first half of the fourth quarter, our guest-focused holiday merchandising and marketing plans drove better-than-expected sales. However, results softened meaningfully following our December announcement of a data breach. As we plan for the new fiscal year, we will continue to work tirelessly to win back the confidence of our guests and deliver irresistible merchandise and offers, and we are encouraged that sales trends have improved in recent weeks.”

1Adjusted diluted earnings per share (“Adjusted EPS”), a non-GAAP financial measure, excludes the impact of certain matters not related to
our routine retail operations, such as expenses related to the data breach and the reduction in the beneficial interest asset.

Fiscal 2014 Earnings Guidance
Fiscal 2014 will be Target’s first full year of operating stores in Canada. As a result, beginning with first quarter 2014, the company will no longer exclude Canadian Segment results from Adjusted EPS. For comparison purposes, prior year Adjusted EPS will also include Canadian Segment results.

In first quarter 2014, the Company expects Adjusted EPS of 60 cents to 75 cents, reflecting operating results in our U.S. and Canadian Segments. This measure excludes approximately (2) cents related to the expected reduction of the beneficial interest asset2, as well as any net expenses related to the data breach. For full-year 2014, Target expects Adjusted EPS of $3.85 to $4.15, reflecting operating results in our U.S. and Canadian Segments. This measure excludes approximately (7) cents related to the expected reduction of the beneficial interest asset2, as well as any net expenses related to the data breach.

At this time, the Company is not able to estimate future expenses related to the data breach. Expenses may include payments associated with potential claims by the payment card networks for alleged counterfeit fraud losses and non-ordinary course operating expenses (such as card re-issuance costs), REDcard fraud and card re-issuance expense, payments associated with civil litigation, governmental investigations and enforcement proceedings, expenses for legal, investigative and consulting fees, and incremental expenses and capital investments for remediation activities. These costs may have a material adverse effect on Target’s results of operations in first quarter and full-year 2014 and future periods.

2See the “Accounting Considerations” section of this release for more information related to the beneficial interest asset.

U.S. Segment Results3
As a reminder, following the sale of the U.S. credit card portfolio in March 2013, Target’s historical U.S. Retail Segment and U.S. Credit Card Segment results were combined to form a new U.S. Segment. Selling, General and Administrative (SG&A) expenses in the new U.S. Segment include income from the profit-sharing arrangement with TD Bank Group, net of servicing expenses. The company classified historical U.S. Credit Card Segment revenues and expenses within U.S. Segment SG&A expenses.4

In fourth quarter 2013, sales decreased 6.6 percent to $20.9 billion from $22.4 billion last year, reflecting the impact of an additional accounting week in 20125 and a 2.5 percent decrease in comparable sales, partially offset by the contribution from new stores. Segment earnings before interest expense and income taxes (EBIT) were $1,413 million in fourth quarter 2013, a decrease of 22.4 percent from $1,821 million in 2012.

Fourth quarter EBITDA and EBIT margin rates were 9.2 percent and 6.8 percent, respectively, compared with 10.4 percent and 8.1 percent in the revised U.S. Segment in 2012. Fourth quarter gross margin rate was 27.6 percent compared with 27.8 percent in 2012, reflecting the impact of clearance markdowns combined with Target’s integrated growth strategies, partially offset by a 0.2 percentage-point benefit from changes to certain vendor agreements. Fourth quarter SG&A expense rate was 18.4 percent in 2013 compared with 17.3 percent in the revised U.S. Segment in 2012. This increase was driven by a smaller contribution from the credit card portfolio, which raised the SG&A rate by approximately 0.5 percentage points, the change to certain vendor agreements and the de-leveraging impact of softer-than-expected sales.

Full-year 2013 sales decreased 0.9 percent to $71.3 billion from $72.0 billion last year, reflecting the impact of an additional accounting week in 20125 and a 0.4 percent decrease in comparable sales, partially offset by the contribution from new stores. Full-year EBIT was $4,959 million in 2013, a decrease of 11.3 percent from $5,589 million in 2012. Full-year 2013 EBITDA and EBIT margin rates were 9.8 percent and 7.0 percent, respectively, compared with 10.6 percent and 7.8 percent in the revised U.S. Segment in 2012.

Full-year gross margin rate increased to 29.8 percent from 29.7 percent in 2012, reflecting category-level rate improvements and approximately 0.2 percentage-points of benefit from changes to certain vendor agreements, partially offset by incremental clearance markdowns and the impact of Target’s integrated growth strategies. Full-year 2013 SG&A expense rate was 20.0 percent, compared with 19.1 percent in the revised U.S. Segment in 2012. This increase was driven by a smaller contribution from the credit card portfolio, which raised the SG&A rate by approximately 0.5 percentage points, investments in technology and supply chain in support of multichannel initiatives and the change to certain vendor agreements.

3See the “Non-Segment Impacts to Consolidated GAAP Earnings per Share” section of this release for information about certain expenses that were included in our Consolidated Statements of Operations as SG&A, but were not part of our U.S. Segment results.

4Quarterly and full-year historical information for the three most recently completed years reflecting the impact of the reclassification, and the results for our two segments, U.S. and Canadian, are attached as Exhibit (99) to our current report on Form 8-K filed April 16, 2013.

5The three- and twelve-month periods ended February 1, 2014 were 13- and 52-week periods, respectively, compared with 14- and 53- week periods ended February 2, 2013. The extra week is excluded from the comparable-sales calculation.

Canadian Segment Results
In fourth quarter 2013, the Canadian Segment generated sales of $623 million and EBIT of $(329) million. The fourth quarter gross margin rate of 4.4 percent reflects continued efforts to clear excess inventory. Canadian operations reduced fourth quarter GAAP EPS by (40) cents6.

During fiscal 2013, Target’s Canadian Segment generated sales of $1.3 billion at a gross margin rate of 14.9 percent and EBIT of $(941) million. Canadian operations reduced Target’s full-year 2013 GAAP EPS by $(1.13)6.

6This amount includes interest expense and tax expense that are not included in the segment measure of profit. A reconciliation of non-
GAAP financial measures is included in the tables attached to this release.

Non-Segment Impacts to Consolidated GAAP Earnings per Share
Target incurred charges in fourth quarter 2013 related to part-time team member health benefit changes, land impairments and workforce reductions. The combined effect of these charges increased fourth quarter Consolidated SG&A expense by approximately $64 million.

During fourth quarter 2013, Target experienced a data breach in which an intruder gained unauthorized access to our network and stole certain payment card and other guest information. The Company incurred $17 million of net expense in the fourth quarter, reflecting $61 million of total expenses partially offset by the recognition of a $44 million insurance receivable. These expenses include costs related to investigating the data breach, offering credit-monitoring and identity-theft protection services to our guests, increased staffing in our call centers, procurement of legal and other professional services, REDcard fraud losses and card replacement costs, and an accrual for a probable loss on payment card networks’ anticipated claims for operating expenses incurred as a result of the data breach. This accrual was based on an expectation of reaching negotiated settlements of the payment card networks’ potential claims for alleged nonordinary course operating expenses associated with the data breach, and not on any determination that it is probable we would be found liable on these claims were they to be litigated. It does not include any amounts for the potential claims by the payment card networks for counterfeit fraud losses. At this time we are not able to reasonably estimate a range of possible losses on the payment card networks’ potential claims in excess of the amount accrued.

Interest Expense and Taxes
Target’s fourth quarter 2013 net interest expense decreased 21.2 percent to $161 million from $204 million in 2012, benefiting from debt retirement in first quarter 2013 resulting from the use of proceeds from the sale of the credit card portfolio. Full-year interest expense in 2013 increased to $1,126 million from $762 million in 2012, reflecting a $445 million charge related to the early retirement of debt in first quarter 2013, partially offset by the benefit from debt retirement resulting from the use of proceeds from the sale of the credit card portfolio.

The Company’s effective income tax rate was 37.0 percent in the fourth quarter, compared with 34.3 percent in fourth quarter 2012. The increase of 2.7 percentage points was driven by the net effect of increased losses related to Canadian operations partially offset by a higher year-over-year benefit from the favorable resolution of various income tax matters. Target’s full-year 2013 effective income tax rate was 36.5 percent, an increase of 1.6 percentage points from 34.9 percent in 2012, which was driven by the net effect of increased losses related to Canadian operations combined with a lower year-over-year benefit from the favorable resolution of various income tax matters.

Capital Returned to Shareholders
In fourth quarter 2013, the Company paid dividends of $272 million. Target did not repurchase any shares of its common stock during the quarter, reflecting current performance and the Company’s commitment to maintain its strong investment-grade credit ratings.

For full year 2013, Target returned more than 125 percent of net earnings to shareholders. In 2013, the company repurchased approximately 21.9 million shares of its common stock at an average price of $67.41 for a total investment of $1.47 billion, and paid dividends of $1.0 billion.

Accounting Considerations
At the close of the sale of its entire U.S. consumer credit card receivables portfolio to TD Bank Group in first quarter 2013, Target recognized a $225 million beneficial interest asset, which effectively represented a receivable for the present value of future profit-sharing Target expected to receive on the receivables sold. The Company estimates the asset will be reduced over the four-year period following the close of the transaction, with larger reductions in the early years. The beneficial interest asset was reduced in fourth quarter 2013 by $16 million and $98 million for the full year.

The Company’s fourth quarter and full-year 2012 GAAP earnings included pre-tax gains of $5 million and $161 million, respectively, associated with the agreement to sell the entire U.S. consumer credit card receivables portfolio to TD Bank Group. These gains are related to the accounting treatment of the consumer credit receivables as “held for sale” assets.

Miscellaneous
Target Corporation will webcast its fourth quarter earnings conference call at 9:30 a.m. CST today. Investors and the media are invited to listen to the call through the Company’s website at www.target.com/investors (click on “events & presentations”). A telephone replay of the call will be available beginning at approximately 11:30 a.m. CST today through the end of business on February 28, 2014. The replay number is (855) 859-2056 (passcode: 78423307).

Statements in this release regarding first quarter and full-year 2014 earnings guidance and the impact of the data breach on the Company’s results of operations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements speak only as of the date they are made and are subject to risks and uncertainties which could cause the Company’s actual results to differ materially. The most important risks and uncertainties are described in Item 8.01 of the Company’s Form 8-K filed on February 26, 2014.

In addition to the GAAP results provided in this release, the Company provides Adjusted diluted earnings per share for the three- and twelve-month periods ended February 1, 2014 and February 2, 2013, respectively. This measure is not in accordance with, or an alternative for, generally accepted accounting principles in the United States. The most comparable GAAP measure is diluted earnings per share. Management believes Adjusted EPS is useful in providing period-to-period comparisons of the results of the Company’s U.S. operations. Adjusted EPS should not be considered in isolation or as a substitution for analysis of the Company’s results as reported under GAAP. Other companies may calculate Adjusted EPS differently than the Company does, limiting the usefulness of the measure for comparisons with other companies.

About Target
Minneapolis-based Target Corporation (NYSE: TGT) serves guests at 1,917 stores – 1,793 in the United States and 124 in Canada – and at Target.com. Since 1946, Target has given 5 percent of its profit through community grants and programs; today, that giving equals more than $4 million a week. For more information about Target’s commitment to corporate responsibility, visit target.com/corporateresponsibility.

media contact

Eric Hausman
Public Relations
p: (612) 761-2054