target corp (TGT) Key Developments
Target Lays Off Another 235 Twin Cities Workers
Aug 31 15
Target laid off another 235 headquarters employees. The company has now laid off nearly 2,100 Twin Cities workers since March. As part of this latest round of cuts, the company also laid off 40 employees outside the Twin Cities and eliminated 35 vacant positions. Most of the affected positions were in the company's technology teams, such business analysis and project management.
Target Corporation Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended August 1, 2015; Provides Earnings Guidance for the Third Quarter of 2015; Revises Earnings Guidance for the Full Year of 2015
Aug 19 15
Target Corporation reported unaudited consolidated earnings results for the second quarter and six months ended August 1, 2015. For the second quarter, the company reported net earnings of $753 million or $1.18 per diluted share compared to net earnings of $234 million or $0.37 per diluted share for the same period a year ago. Sales were $17,427 million compared to $16,957 million last year. Earnings before interest expense and income taxes were $1,330 million compared to $1,023 million last year. Earnings before income taxes were $1,182 million compared to $590 million last year. Net earnings from continuing operations was $773 million or $1.21 per diluted share compared to $391 million or $0.61 per diluted share last year. EBITDA was $1,901 million compared to $1,686 million last year. EBIT was $1,350 million compared to $1,149 million last year. Adjusted diluted earnings per share were $1.22 compared to $1.01 per share last year.
For the six months, the company reported net earnings of $1,388 million or $2.16 per diluted share compared to net earnings of $653 million or $1.02 per diluted share for the same period a year ago. Sales were $34,546 million compared to $33,614 million last year. Earnings before interest expense and income taxes were $2,485 million compared to $2,045 million last year. Earnings before income taxes were $2,180 million compared to $1,460 million last year. Net earnings from continuing operations was $1,424 million or $2.21 per diluted share compared to $962 million or $1.51 per diluted share last year. Cash flow provided by operations was $2,789 million compared to $1,514 million last year. Expenditures for property and equipment were $710 million compared to $881 million last year. EBITDA was $3,701 million compared to $3,251 million last year. EBIT was $2,611 million compared to $2,202 million last year. Adjusted diluted earnings per share were $2.32 compared to $1.93 per share last year.
In third quarter 2015, the company expects adjusted EPS of $0.79 to $0.89 compared with $0.79 in third quarter 2014.
The company revised earnings guidance for the full year of 2015. The company remain mindful of the intensely competitive nature of holiday season and have noted the inventory levels the company seeing at some competitors. Taking both of those factors into account, the company now expects adjusted EPS of $4.60 to $4.75, compared with prior guidance of $4.50 to $4.65.
Target Corp. Reaches Settlement Agreement with Visa
Aug 18 15
Target Corp. said that it has reached a settlement agreement with Visa that will pay the card network and its issuers up to approximately $67 million for costs related to the retailer's massive 2013 data breach, which compromised approximately 110 million credit and debit cards. The settlement was conditioned upon issuers representing a majority of breach-affected Visa cards entering into direct settlements with Target and Visa. As a result, offers are being extended to the remaining group of eligible Visa issuers using a settlement formula that would enable them to achieve the same economics as the Visa issuers that have already settled with Target and Visa. In April of this year, Target announced a much smaller $19 million proposed settlement with MasterCard to cover issuers' costs related to the data breach. That settlement failed to receive the required 90% participation rate from issuers, and in May the deal cratered. Five financial institutions - Umpqua Bank, Mutual Bank, Village Bank, CSE Federal Credit Union and First Federal Savings of Lorain - fought the settlement and are pursuing class action status. That case is still working its way through the court system.
Target Corp. Appoints John Mulligan to Newly Created Chief Operating Officer Role and Cathy Smith as Chief Financial Officer, Effective September 1, 2015
Aug 17 15
Target Corp. promoted John Mulligan to the newly created role of executive vice president and chief operating officer, effective September 1, 2015. Mulligan will assume oversight of stores, supply chain and properties. Joining the company as executive vice president and chief financial officer will be Cathy Smith, a seasoned retail business leader. Both Mulligan and Smith will report to the company's chairman and chief executive officer, Brian Cornell. Prior to joining the company, Smith served as executive vice president and chief financial officer at St. Louis-based Express Scripts. As CFO at Target, Smith’s responsibilities will include Treasury and Tax; Internal and External Financial Reporting and Operations; Financial Planning and Analysis; Internal Audit; Investor Relations; and the company's Financial and Retail Services Business.
Target Corporation to Move 1,300 Employees of its West Campus Site to Brooklyn Park Campus in Next Summer
Aug 14 15
Target Corporation's west campus along Interstate 394 is the latest casualty of the retailer's downsizing. The company announced that the site's 1,300 employees that the nine-story tower near the western edge of Minneapolis will go up for sale in 2015 fall. Those workers, who are mostly in financial and retail services such as Redcard and customer relations, will move next summer to the company's recently expanded Brooklyn Park campus, about 15 miles away.