Target Corporation (TGT) said it is resuming its $10 billion share repurchase program authorized by its Board in November 2007. The announcement came on the heels of better-than-expected retail and credit card segment results, and active management of capital expenditures, which led to robust cash flow generation.
Based in Minneapolis, Minnesota, Target suspended its share repurchase activity in November 2008 to preserve its cash and safeguard its debt ratings in the wake of a faltering economy.
By the end of third-quarter 2009, Target had already bought back about 95.2 million shares under the program at an average price of $51.42 each, aggregating $4.9 billion, and expects to exhaust the program in the next two to three years.
Earlier, Target had delivered comparable-store sales of 1.8% for December, substantially up from a decline of 4.1% registered in the same month last year. However, year-to-date comps slid 2.7% compared to a fall of 2.9% in the same period last year.
Net retail sales for December jumped 5% year-on-year to $9,741 million, whereas year-to-date sales climbed marginally by 0.7% to $59,147 million.
Target, which currently operates 1,744 stores in 49 states, and faces stiff competition from Wal-Mart Stores Inc. (WMT) recently announced a quarterly dividend of 17 cents a share, payable on March 10, 2010 to shareholders of record as of Feb. 20, 2010.
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