Target Q3 adjust earnings drop by 2.9 percent

REPORT_ Target Corporation reported that its third quarter 2014 adjusted earnings per share of 0.54 dollars decreased 2.9 percent from 0.56 dollars per share in 2013. GAAP earnings per share were 0.55 dollars in third quarter 2014, up 2.7 percent from 0.54 dollars last year.

In the fourth quarter 2014, the Company expects adjusted EPS of 1.13 dollars to 1.23 dollars, reflecting operating results in its US and Canadian segments. Target expects full-year 2014 adjusted EPS of 3.15 dollars to 3.25 dollars. Full-year 2014 GAAP EPS is expected to be 45 cents below adjusted EPS.

“We’re pleased with our third quarter financial results, which were driven by better-than-expected performance in our US Segment,” said Brian Cornell, Chairman and Chief Executive Officer of Target Corporation, adding, “We’re encouraged by the improving trend we’ve seen in our US business throughout the year, and our fourth quarter plans are designed to sustain this momentum.”

In third quarter 2014, US segment sales increased 1.9 percent to 17.3 billion dollars from 16.9 billion dollars last year, reflecting a 1.2 percent increase in comparable sales combined with sales from new stores. Third quarter EBITDA and EBIT margin rates were 8.5 percent and 5.4 percent, respectively, compared with 8.7 percent and 5.8 percent in 2013. Third quarter gross margin rate declined to 29.5 percent from 30.0 percent in 2013.

Third quarter Canadian segment sales increased 43.8 percent to 479 million dollars from 333 million dollars last year, reflecting sales from non-mature stores and a comparable-sales increase of 1.6 percent. Third quarter Canadian Segment comparable sales reflect results in 82 Canadian stores.