Target Reports Fourth Quarter and Fiscal 2012 Earnings
Target Reports Fourth Quarter and Fiscal 2012 Earnings
Target Reports Fourth Quarter and Fiscal 2012 Earnings
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<strong>Target</strong> Corporation Announces <strong>Fourth</strong> <strong>Quarter</strong> <strong>and</strong> <strong>Fiscal</strong> <strong>2012</strong> <strong>Earnings</strong> – Page 3 of 6<br />
<strong>Fourth</strong> quarter EBITDA <strong>and</strong> EBIT margin rates were 9.8 percent <strong>and</strong> 7.5 percent,<br />
respectively, compared with 10.3 percent <strong>and</strong> 7.8 percent in 2011. <strong>Fourth</strong> quarter gross margin rate<br />
declined to 27.8 percent in <strong>2012</strong> from 28.4 percent in 2011, reflecting the impact of the Company’s<br />
integrated growth strategies combined with the impact of markdowns on seasonal merch<strong>and</strong>ise.<br />
<strong>Fourth</strong> quarter selling, general <strong>and</strong> administrative (SG&A) expense rate was 18.0 percent in <strong>2012</strong>,<br />
compared with 18.1 percent in 2011.<br />
Full-year <strong>2012</strong> sales increased 5.1 percent to $72.0 billion from $68.5 billion in 2011,<br />
reflecting a 2.7 percent increase in comparable-store sales combined with the contribution from new<br />
stores <strong>and</strong> one additional accounting week 1 . Full-year segment EBIT was $5,019 million in <strong>2012</strong>, an<br />
increase of 5.3 percent from $4,765 million in 2011.<br />
Full-year <strong>2012</strong> EBITDA <strong>and</strong> EBIT margin rates were 9.8 percent <strong>and</strong> 7.0 percent,<br />
respectively, compared with 10.0 percent <strong>and</strong> 7.0 percent in 2011. Full-year gross margin rate was<br />
29.7 percent in <strong>2012</strong>, compared with 30.1 percent in 2011, reflecting the impact of the Company’s<br />
integrated growth strategies. Full-year SG&A expense rate was 19.9 percent in <strong>2012</strong>, compared with<br />
20.1 percent in 2011.<br />
1 The three- <strong>and</strong> twelve-month periods ended February 2, 2013 were 14- <strong>and</strong> 53-week periods, respectively, compared with 13- <strong>and</strong> 52-<br />
week periods in 2011. The extra week has been excluded from the comparable-store sales calculation.<br />
U.S. Credit Card Segment Results 2<br />
<strong>Fourth</strong> quarter average receivables decreased 4.6 percent to $6.1 billion in <strong>2012</strong> from $6.4<br />
billion in 2011. <strong>Fourth</strong> quarter <strong>2012</strong> portfolio spread to LIBOR was $141 million, or 8.5 percent,<br />
compared with $111 million, or 6.9 percent, in 2011. Performance in fourth quarter <strong>2012</strong> reflected a<br />
$10 million reduction in the allowance for doubtful accounts, compared with a $1 million reduction<br />
in fourth quarter 2011.<br />
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