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Still finding its footing since entering the Canadian market, Minneapolis-based Target Corp. reported sales of $16.8 billion for the second quarter of 2013, a 2.4 percent increase over the same period last year -- reflecting a slight rise in same-store sales combined with the contribution of new stores.
“Target’s second quarter financial results benefited from disciplined execution of our strategy and strong expense control, offsetting softer-than-expected sales,” said Gregg Steinhafel, Target's chairman, president and CEO. “For the balance of this year, our U.S. outlook envisions continued cautious spending by consumers in the face of ongoing household budget pressures. In Canada, where we are only five months into our market launch, we continue to learn, adjust and refine operations in our existing stores as we prepare to open another 56 stores by year-end.”
Target opened 44 Canadian stores in the second quarter, bringing the total store count to 68 and passing the halfway mark to the goal of operating 124 stores in Canada by year's end.
Q2 adjusted earnings per share of $1.19 were at the top of the expected range, despite a softer-than-expected U.S. comparable sales increase of 1.2 percent
For Q3, Target expects adjusted EPS of 80 to 90 cents and GAAP EPS of 55 to 65 cents. For full-year 2013, Target now expects adjusted EPS will be near the low end of its previous guidance of $4.70 to $4.90. GAAP EPS is expected to be approximately 95 cents lower than adjusted EPS, due to dilution related to Canadian operations, losses from early debt retirement and gains from the sale of Target's consumer credit card receivables portfolio to TD Bank Group.
Target operates 1,856 stores – 1,788 in the United States and 68 in Canada.