Target Reports First Quarter 2013 Earnings

  Target Reports First Quarter 2013 Earnings

                 Adjusted EPS of $1.05 and GAAP EPS of $0.77

  *First quarter earnings were below expectations as a result of soft sales
    in seasonal and weather-related categories
  *The Company opened its first 24 Canadian stores in the first quarter as
    part of its plan to open 124 stores in Canada by the end of the year
  *In the first quarter, Target returned $779 million to shareholders through
    dividends and share repurchase

Business Wire

MINNEAPOLIS -- May 22, 2013

Target  Corporation (NYSE: TGT) today reported first quarter net earnings of
$498 million, or $0.77 per share, which includes:

  *Losses related to the early retirement of debt of (41) cents per share;
  *EPS dilution related to the Canadian Segment of (24) cents, and;
  *Net accounting gains of 36 cents associated with the sale of Target’s
    entire consumer credit card receivables portfolio to TD Bank Group.

Adjusted earnings per share, a measure the Company believes is useful in
providing period-to-period comparisons of the results of its U.S. operations,
were $1.05 in first quarter 2013, down 5.0 percent from $1.11 in 2012. A
reconciliation of non-GAAP financial measures to GAAP measures is provided in
the tables attached to this press release. All earnings per share figures
refer to diluted earnings per share.

“Target’s first quarter earnings were below expectations as a result of
softer-than-expected sales, particularly in apparel and other seasonal and
weather-sensitive categories,” said Gregg Steinhafel, chairman, president, and
chief executive officer of Target Corporation. “While we are disappointed in
our first quarter performance, we remain confident in our strategy, and we
continue to invest in initiatives, including Canada, our digital channels and
CityTarget, that will drive Target’s long-term growth.”

Fiscal 2013 Earnings Guidance

In second quarter 2013, the Company expects adjusted EPS of $1.09 to $1.19 and
GAAP EPS of $0.90 to $1.00. The difference between the adjusted and GAAP EPS
ranges reflects expected dilution of approximately (16) cents related to
Canadian operations, and (3) cents related to the expected reduction in the
beneficial interest asset recorded on the sale of our credit card portfolio.

For full-year 2013, the Company now expects adjusted EPS of $4.70 to $4.90,
compared with prior guidance of $4.85 to $5.05. GAAP EPS is expected to be
$4.12 to $4.32, approximately 58 cents lower than adjusted EPS due to:

  *Losses related to the early retirement of debt of (42) cents per share;
  *Expected EPS dilution related to the Canadian Segment of approximately
    (45) cents, and;
  *Net accounting gains of approximately 29 cents associated with the sale of
    Target’s entire consumer credit card receivables portfolio to TD Bank
    Group.

U.S. Segment Results

In first quarter 2013, sales increased 0.5 percent to $16.6 billion from $16.5
billion last year, reflecting a 0.6 percent decline in comparable-store sales
combined with the contribution from new stores. Segment earnings before
interest expense and income taxes (EBIT) were $1,239 million in the first
quarter of 2013, a decrease of 7.5 percent from $1,340 million in 2012.

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. In
prior periods, credit card revenues, net of credit card expenses, from the
historical U.S. Credit Card Segment have been classified within U.S. Segment
SG&A expenses.^(1)

In addition, beginning with fiscal 2013, Target made changes to certain vendor
agreements regarding payments received in support of marketing programs. As a
result, these payments are being recorded as a reduction to U.S. Segment cost
of sales rather than a reduction to SG&A expenses, creating equivalent
year-over-year increases in both gross margin and SG&A expense rates. This
change has no effect on U.S. Segment EBITDA and EBIT margin rates.

First quarter EBITDA margin rate was 10.4 percent, compared with 11.2 percent
in the revised U.S. Segment and 10.3 percent in the historical U.S. Retail
Segment in first quarter 2012. First quarter EBIT margin rate was 7.5 percent,
compared with 8.1 percent in the revised U.S. Segment and 7.3 percent in the
historical U.S. Retail Segment in first quarter 2012.

First quarter gross margin rate increased to 30.7 percent in 2013 from 30.2
percent in 2012, reflecting category rate improvements combined with a 0.2
percentage-point benefit from changes to the Company’s vendor agreements,
partially offset by the impact of the Company’s integrated growth strategies.
First quarter SG&A expense rate was 20.3 percent in 2013, compared with 2012
rates of 19.0 percent in the revised U.S. Segment and 19.9 percent in the
historical U.S. Retail Segment. Compared with the U.S. Segment in first
quarter 2012, the SG&A expense rate increase was primarily driven by a smaller
benefit from credit card income (including the impact of profit-sharing with
TD Bank) and an increase in technology investments. In addition, the change in
Target’s vendor agreements increased first quarter 2013 SG&A rate by
approximately 0.2 percentage points, offsetting the equivalent benefit to the
gross margin rate.


^1Quarterly 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.

Canadian Segment Results

Target opened its first 24 Canadian stores in March 2013, which generated
sales of $86 million in the first quarter with a gross margin rate of 38.4
percent. EBIT for the first quarter was $(205) million, as gross margin of $33
million was offset by $238 million in start-up expenses, operating expenses,
depreciation and amortization related to the Company’s market entry. Canadian
operations reduced Target’s GAAP earnings per share by 24 cents in first
quarter 2013^2.


^2This amount includes interest expense and tax expense that are not included
in the segment measure of profit. A reconciliation of non-GAAP measures is
included in the tables attached to this release.

Interest Expense and Taxes

Net interest expense increased to $629 million in first quarter 2013, compared
with $184 million in first quarter 2012, due to a $445 million charge related
to the early retirement of debt.

The Company’s effective income tax rate was 36.0 percent in the first quarter,
compared with 36.7 percent in first quarter 2012.

Capital Returned to Shareholders

In first quarter 2013, the Company repurchased approximately 8.5 million
shares of its common stock at an average price of $64.04 for a total
investment of $547 million. The Company also paid dividends of $232 million
during the quarter.

Accounting Considerations

Following the close of the sale of its entire U.S. consumer credit card
receivables portfolio to TD Bank Group, Target recognized net pre-tax
accounting gains of approximately $391 million. The gains reflect $166 million
related to cash received in excess of the book value of the receivables, net
of transaction costs, and $225 million related to the beneficial interest
asset. The beneficial interest asset effectively represents a receivable for
the present value of future profit-sharing Target expects to receive on the
receivables sold. The Company estimates the asset will be reduced over a
four-year period, with larger reductions in the early years. During the first
quarter, the beneficial interest asset was reduced by $17 million. Inclusive
of all of these impacts, the net impact of the transaction benefitted first
quarter GAAP EPS by 36 cents.

Miscellaneous

Target Corporation will webcast its first quarter earnings conference call at
9:30 a.m. CDT 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. CDT today through the end of business on May 24,
2013. The replay number is (855) 859-2056 (passcode: 78414341).

Statements in this release regarding second quarter and full year 2013
earnings guidance, including the expected impact related to the credit card
receivables transaction on earnings performance, 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 1A of the Company’s Form 10-K for the fiscal year ended
February 2, 2013.

In addition to the GAAP results provided in this release, the Company provides
adjusted diluted earnings per share for the three months ended May 4, 2013 and
April 28, 2012, 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 1,832 stores
– 1,784 in the United States and 48 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.

For more information, visit Target.com/Pressroom.

                                                           
TARGET CORPORATION
                                                                            
Consolidated Statements of Operations
                               Three Months Ended
                               May 4,           April 28,
(millions, except per        2013            2012            Change     
share data) (unaudited)
Sales                          $  16,706        $  16,537        1.0        %
Credit card revenues           -             330         (100.0  )  
Total revenues                    16,706           16,867        (1.0    )
Cost of sales                     11,563           11,541        0.2
Selling, general and              3,590            3,392         5.8
administrative expenses
Credit card expenses              -                120           (100.0  )
Depreciation and                  536              529           1.4
amortization
Gain on receivables            (391    )      -           n/a       
transaction
Earnings before
interest expense and              1,408            1,285         9.6
income taxes
Net interest expense           629           184         243.1     
Earnings before income            779              1,101         (29.3   )
taxes
Provision for income           281           404         (30.6   )  
taxes
Net earnings                 $  498         $  697         (28.5   )  %
Basic earnings per           $  0.78        $  1.05        (25.8   )  %
share
Diluted earnings per         $  0.77        $  1.04        (26.0   )  %
share
Weighted average common
shares outstanding
Basic                             642.1            666.3         (3.6    )  %
Dilutive impact of             7.4           6.1                   
share-based awards^(a)
Diluted                        649.5         672.4       (3.4    )  %
^(a)Excludes 4.4 million and 11.5 million share-based awards for the three
months ended May 4, 2013 and April 28, 2012, respectively, because their
effects were antidilutive.
                                                                            
Subject to reclassification


                                                              
TARGET CORPORATION
                                                                   
Consolidated Statements of Financial Position
                                May 4,            February 2,      April 28,
(millions)                    2013             2013            2012
Assets                          (unaudited)                        (unaudited)
Cash and cash
equivalents, including          $  1,819          $  784           $ 675
short-term investments of
$1,112, $130 and $18
Inventory                          8,099             7,903           7,670
Other current assets               1,939             1,860           1,698
Credit card receivables,           -                 5,841           -
held for sale
Credit card receivables,
net of allowance of $0,         -              -            5,548   
$0 and $395
Total current assets               11,857            16,388          15,591
Property and equipment
Land                               6,213             6,206           6,136
Buildings and                      28,949            28,653          27,037
improvements
Fixtures and equipment             5,199             5,362           4,979
Computer hardware and              2,382             2,567           2,275
software
Construction-in-progress           1,348             1,176           1,232
Accumulated depreciation        (13,017  )      (13,311  )    (12,151 )
Property and equipment,            31,074            30,653          29,508
net
Other noncurrent assets         1,303          1,122        1,076   
Total assets                  $  44,234       $  48,163      $ 46,175  
Liabilities and
shareholders' investment
Accounts payable                $  6,721          $  7,056         $ 6,292
Accrued and other current          3,915             3,981           3,671
liabilities
Current portion of
long-term debt and other        523            2,994        2,483   
borrowings
Total current liabilities          11,159            14,031          12,446
Long-term debt and other           13,691            14,654          14,967
borrowings
Deferred income taxes              1,295             1,311           1,209
Other noncurrent                1,569          1,609        1,690   
liabilities
Total noncurrent                   16,555            17,574          17,866
liabilities
Shareholders' investment
Common stock                       53                54              55
Additional paid-in                 4,159             3,925           3,595
capital
Retained earnings                  12,873            13,155          12,854
Accumulated other
comprehensive loss
Pension and other benefit          (492     )        (532     )      (610    )
liabilities
Currency translation
adjustment and cash flow        (73      )      (44      )    (31     )
hedges
Total shareholders'             16,520         16,558       15,863  
investment
Total liabilities and         $  44,234       $  48,163      $ 46,175  
shareholders' investment
                                                                   
Common Stock Authorized 6,000,000,000 shares, $.0833 par value; 641,253,199,
645,294,423 and 661,096,903 shares issued and outstanding at May 4, 2013,
February 2, 2013 and April 28, 2012, respectively.

Preferred Stock Authorized 5,000,000 shares, $.01 par value; no shares were
issued or outstanding at May 4, 2013, February 2, 2013 or April 28, 2012.
                                                                   
Subject to reclassification
                                                                   

                                                        
TARGET CORPORATION
                                                              
Consolidated Statements of Cash Flows
                                         Three Months Ended
                                         May 4,               April 28,
(millions)(unaudited)                  2013                2012
Operating activities
Net earnings                             $   498              $   697
Reconciliation to cash flow
Depreciation and amortization                536                  529
Share-based compensation                     29                   25
expense
Deferred income taxes                        (66      )           7
Bad debt expense^(a)                         41                   52
Gain on receivables                          (391     )           -
transaction
Loss on debt extinguishment                  445                  -
Noncash (gains)/losses and                   8                    2
other, net
Changes in operating accounts:
Accounts receivable originated               157                  142
at Target
Proceeds on sale of accounts
receivable originated at                     2,717                -
Target
Inventory                                    (175     )           248
Other current assets                         (64      )           88
Other noncurrent assets                      20                   (3       )
Accounts payable                             (375     )           (566     )
Accrued and other current                    (146     )           28
liabilities
Other noncurrent liabilities              (4       )         58       
Cash flow provided by                     3,230             1,307    
operations
Investing activities
Expenditures for property and                (901     )           (829     )
equipment
Proceeds from disposal of                    19                   1
property and equipment
Change in accounts receivable                121                  185
originated at third parties
Proceeds from sale of accounts
receivable originated at third               3,020                -
parties
Cash paid for acquisitions,                  (58      )           -
net of cash assumed
Other investments                         52                (16      )
Cash flow provided
by/(required for) investing               2,253             (659     )
activities
Financing activities
Change in commercial paper,                  (970     )           450
net
Additions to long-term debt                  -                    500
Reductions of long-term debt                 (2,916   )           (1,005   )
Dividends paid                               (232     )           (201     )
Repurchase of stock                          (540     )           (592     )
Stock option exercises and                   209                  82
related tax benefit
Other                                     -                 (2       )
Cash flow required for                    (4,449   )         (768     )
financing activities
Effect of exchange rate
changes on cash and cash                  1                 1        
equivalents
Net increase/(decrease) in                   1,035                (119     )
cash and cash equivalents
Cash and cash equivalents at              784               794      
beginning of period
Cash and cash equivalents at           $   1,819          $   675      
end of period
^(a)Includes net write-offs of credit card receivables prior to the sale of
receivables on March 13, 2013, and bad debt expense on credit card receivables
during the three months ended April 28, 2012.
                                                              
Subject to reclassification
                                                              

TARGET CORPORATION

U.S. Segment

                                                                      
U.S. Segment            Three Months Ended                    
Results
                          May 4,              April 28,
(millions)              2013                2012               Change   
(unaudited)
Sales                     $   16,620           $   16,537          0.5      %
Cost of sales              11,509            11,541        (0.3  )  
Gross margin                  5,111                4,996           2.3
SG&A expenses^(a)          3,381             3,148         7.4     
EBITDA                        1,730                1,848           (6.4  )
Depreciation and           491               508           (3.3  )  
amortization
EBIT                    $   1,239          $   1,340         (7.5  )  %
Note: Prior period results have been revised to reflect the combination of our
historical U.S. Retail Segment and U.S. Credit Card Segment into one U.S.
Segment.
^(a)SG&A includes credit card revenues and expenses for both periods presented
prior to the close of the transaction. For the three months ended May 4, 2013,
SG&A also includes $105 million of profit sharing income from the arrangement
with TD Bank.
EBITDA is earnings before interest expense, income taxes, depreciation and
amortization.
EBIT is earnings before interest expense and income taxes.
                                                                            
Prior period results have been revised to reflect the combination of our
historical U.S. Retail Segment and U.S. Credit Card Segment into one U.S.
Segment.



U.S. Segment                                                               2013 U.S. Segment Change vs.
Rate Analysis                Three Months Ended April 28, 2012          2012
Reconciliation
                                            Impact of                                   
                   Three                     Historical       Historical                    Historical
                                             U.S.
                   Months       U.S.         Credit Card      U.S.         U.S.             U.S. Retail
                   Ended        Segment,                      Retail       Segment,
(unaudited)      May 4,     as         Segment^(a)    Segment     as             Segment^(c) 
                   2013         revised                                    revised^(b)
Gross margin        30.7   %   30.2     %   -           pp   30.2       % 0.5         pp   0.5         pp
rate
SG&A expense         20.3       19.0         (0.9    )        19.9         1.3              0.4
rate
EBITDA margin        10.4       11.2         0.9              10.3         (0.8    )        0.1
rate
Depreciation
and                  3.0        3.1          0.1              3.0          (0.1    )        -
amortization
expense rate
EBIT margin       7.5     8.1       0.8           7.3        (0.6    )      0.2        
rate
Rate analysis metrics are computed by dividing the applicable amount by sales.
^(a)Represents the impact of combining the historical U.S. Credit Card Segment and the U.S. Retail Segment
into one U.S. Segment for the three months ended April 28, 2012. U.S. Segment results, as revised, for
prior periods reflect lower SG&A rates and increased EBIT and EBITDA margin rates resulting from the
inclusion of credit card profits, net of expenses, within SG&A, as compared to historical U.S. Retail
Segment results for the same period.
^(b)Represents the difference between the U.S. Segment rates for the three months ended May 4, 2013 and
the U.S. Segment rates, as revised, for the three months ended April 28, 2012.
^(c)Represents the difference between the U.S. Segment rates for the three months ended May 4, 2013 and
the historical U.S. Retail Segment rates for the three months ended April 28, 2012.
                                                         

                                                                          
Comparable-Store Sales               Three Months Ended
                                       May 4,                April 28,
(unaudited)                          2013                 2012         
Comparable-store sales                 (0.6    )    %         5.3          %
change
Drivers of change in
comparable-store sales:
Number of transactions                 (1.9    )              2.0
Average transaction amount             1.3                    3.2
Selling price per unit                 (0.6    )              2.6
Units per transaction                1.8                 0.6         
The comparable-store sales increases or decreases above are calculated by
comparing sales in fiscal year periods with comparable prior-year periods of
equivalent length.
                                                                           


REDcard Penetration               Three Months Ended               
                                    May 4,             April 28,
(unaudited)                       2013              2012           
Target Credit Cards                 8.5          %       7.1             %
Target Debit Card                 8.6               4.5            
Total REDcard Penetration         17.1        %      11.6           %
Represents the percentage of Target sales that are paid for using REDcards.



Number of
Stores and    Number of Stores               Retail Square Feet^(a)
Retail
Square Feet
                May     February   April     May 4,    February   April
                4,        2,           28,                   2,           28,
(unaudited)   2013    2013       2012    2013      2013       2012
General
merchandise     359       391          521       42,435      46,584       62,464
stores
Expanded
food            1,168     1,131        992       151,119     146,249      128,885
assortment
stores
SuperTarget     251       251          251       44,500      44,500       44,503
stores
CityTarget    6       5          -       614       514        -
stores
Total         1,784   1,778      1,764   238,668   237,847    235,852
^(a) In thousands; reflects total square feet, less office, distribution center
and vacant space.
                

Subject to reclassification

TARGET CORPORATION

Canadian Segment


Canadian Segment          Three Months Ended               
Results
                            May 4,            April 28,
(millions)                2013              2012             Change     
(unaudited)
Sales                       $   86             $   -             n/a        %
Cost of sales                53              -            n/a       
Gross margin                    33                 -             n/a
SG&A expenses^(a)            193             34          461.3     
EBITDA                          (160   )           (34   )       365.2
Depreciation and             45              21          113.4     
amortization^(b)
EBIT                      $   (205   )      $   (55   )      269.1     %
^(a)SG&A expenses include start-up and operating expenses.
^(b)Depreciation and amortization results from depreciation of capital lease
assets and leasehold interests. For the three months ended May 4, 2013 and
April 28, 2012, the lease payment obligation also gave rise to $19 million and
$20 million of interest expense, respectively.



Canadian Segment Rate Analysis Reconciliation   Three
                                                  Months Ended
(unaudited)                                     May 4, 2013  
Gross margin rate                                   38.4      %
SG&A expense rate                                    223.9
EBITDA margin rate                                   (185.6  )
Depreciation and amortization expense rate           52.6
EBIT margin rate                                  (238.1  ) 
                                                               


REDcard Penetration                        Three
                                             Months Ended
(unaudited)                                May 4, 2013              
Target Credit Cards                                 1.0              %
Target Debit Card                                 1.0             
Total REDcard Penetration                         2.0             %
Represents the percentage of Target sales that are paid for using REDcards.



Number of Stores and       Number of Stores          Retail Square Feet^(a)
Retail Square Feet
                            May 4,    February 2,     May 4,    February 2,
(unaudited)               2013      2013           2013      2013
General merchandise       24        -              2,832     -
stores
^(a)  In thousands; reflects total square feet, less office, distribution
center and vacant space.


Subject to reclassification

                                                            
TARGET CORPORATION
                                                                  
Reconciliation of Non-GAAP Financial Measures

                                     Three Months Ended
                                     May 4,      April 28,
(unaudited)                        2013       2012           Change
GAAP diluted earnings per share      $ 0.77      $ 1.04              (26.0  )%
Adjustments                         0.28     0.07        
Adjusted diluted earnings per      $ 1.05    $ 1.11          (5.0   )%
share
A detailed reconciliation is provided below.

                                                                  Consolidated
(millions,
except per share     U.S.         Canadian   Other          GAAP Total
data)
(unaudited)
Three Months
Ended May 4,
2013
Segment profit         $  1,239      $ (205  )   $ -              $  1,034
Net interest              165          19          445     ^(d)      629
expense
Gain on
receivables               -            -           (391  )           (391   )
transaction^(a)
Reduction of
beneficial               -          -         17            17     
interest asset
Earnings before           1,074        (224  )     (71   )           779
income taxes
Provision for            391       (71   )   (39   ) ^(e)    281    
income taxes^(b)
Net earnings           $  683      $ (153  )  $ (32   )      $  498    
Diluted earnings     $  1.05     $ (0.24 )  $ (0.05 )      $  0.77   
per share^(c)
Three Months
Ended April 28,
2012
Segment profit         $  1,340      $ (55   )   $ -              $  1,285
Net interest             164       20       -              184    
expense
Earnings before           1,176        (75   )     -                 1,101
income taxes
Provision for            432       (20   )   (8    ) ^(e)    404    
income taxes^(b)
Net earnings           $  744      $ (55   )  $ 8           $  697    
Diluted earnings     $  1.11     $ (0.08 )  $ 0.01        $  1.04   
per share^(c)
Note: Our segment measure of profit is used by management to evaluate the
return on our investment and to make operating decisions. To provide
additional transparency, we have disclosed non-GAAP adjusted diluted earnings
per share, which excludes the impact of our 2013 Canadian market entry,
adjustments related to the sale of our U.S. credit card receivables portfolio,
favorable resolution of various income tax matters and the loss on early
retirement of debt. We believe this information is useful in providing
period-to-period comparisons of the results of our U.S. operations. The sum of
the non-GAAP adjustments may not equal the total adjustment amounts due to
rounding.
                                                                  
^(a)  Represents consideration received from the sale of our U.S. credit card
receivables in the first quarter of 2013 in excess of the recorded amount of
the receivables. Consideration included a beneficial interest asset of $225
million.
^(b)  Taxes are allocated to our business segments based on estimated income
tax rates applicable to the operations of the segment for the period.
^(c)  For the three months ended May 4, 2013 and April 28, 2012, average
diluted shares outstanding were 649.5 million and 672.4 million, respectively.
^(d)  Represents the loss on early retirement of debt.
^(e)  Represents the effect of resolution of income tax matters. The results
for the three months ended May 4, 2013 also include a $138 million tax expense
for the gain on receivables transaction and the reduction of the beneficial
interest asset, and a $176 million tax benefit related to the loss on early
retirement of debt.
                                                                  
Subject to reclassification
                                                                  

Contact:

Target  Corporation
John Hulbert, Investors, 612-761-6627
or
Stacey Wempen, Financial Media, 612-761-6785
or
Target Media Hotline, 612-696-3400