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MINNEAPOLIS, Jan 12, 2012 (BUSINESS WIRE) –
Target Corporation

/quotes/zigman/253872/quotes/nls/tgt TGT
+1.20%

today announced that its board of
directors has authorized a new $5 billion share repurchase program. The
company expects to begin repurchasing shares under this new
authorization upon completion of the current $10 billion program in
early 2012.

Since Target announced its current share repurchase authorization in
November 2007, through the third quarter of 2011 the company had
repurchased more than 185 million shares at an average price of $51.53
per share. These repurchased shares represent approximately 22 percent
of shares outstanding at the time the current program was announced. The
company expects to complete the new $5 billion authorization in the next
2 to 3 years.

“Our plans envision continued generation of much more cash than we
believe is appropriate to invest in our core businesses,” said Doug
Scovanner, EVP and chief financial officer of Target Corporation. “We’re
committed to maintaining Target’s long history of returning cash to
shareholders through both dividends and share repurchase, and this new
authorization will allow for seamless execution of share repurchase
beyond completion of the current program.”

Priorities for Dividends and Share Repurchase

Dividends represent the foundation of Target’s strategy to return cash
to its shareholders. The company has paid a dividend every quarter since
it became a public company in 1967, and in 2011 the company marked its 40th
consecutive year of annual dividend increases. Over the last 5 years,
Target Corporation’s dividend has grown much faster than earnings per
share, reflecting a slower pace of capital expenditures along with
robust generation of cash from operations. The company expects to
continue to grow the dividend at a robust pace which would allow the
annual dividend to rise to $3.00 or more by 2017, assuming the company
meets its goal to grow annual earnings per share to $8.00 or more by
that time.

Share repurchase represents an opportunity to apply excess cash flow to
what the company believes will be an attractive long-term investment,
and the company intends to continue to govern its pace of execution of
share repurchase to allow it to maintain strong investment-grade credit
ratings. The company believes this investment will prove to be
especially valuable if it is able to achieve its long-term EPS growth
objectives.

Through the first three quarters of 2011, a year in which capital
investment has been elevated to support the company’s expected 2013
Canadian market launch, the company has invested more than $1.7 billion
in share repurchase, retiring more than 34 million shares. These
repurchased shares represent nearly 5% of shares outstanding at the
beginning of the year. In 2012, while capital investment will remain
somewhat elevated in support of the Canadian market launch, the company
anticipates it will have capacity to invest another $1.5 billion or more
in share repurchase. Over time the pace of share repurchase execution
will likely increase, as annual capital expenditures are expected to
moderate following the launch of Target stores in Canada.

Forward-Looking Statements

Statements in this release regarding expected dividends, share
repurchase, earnings per share, share price, cash flow and capital
expenditures 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 January
29, 2011.

About Target

Minneapolis-based Target Corporation

/quotes/zigman/253872/quotes/nls/tgt TGT
+1.20%

serves guests at 1,767
stores across the United States and at Target.com. The company plans to
open its first stores in Canada in 2013. In addition, the company
operates a credit card segment that offers branded proprietary credit
card products. Since 1946, Target has given 5 percent of its income
through community grants and programs; today, that giving equals more
than $3 million a week. For more information about Target’s commitment
to corporate responsibility, visit Target.com/hereforgood.

For more information, visit Target.com/Pressroom.

SOURCE: Target Corporation

Target Corporation
John Hulbert, Investors, 612-761-6627
or
Eric Hausman, Financial Media, 612-761-2054
or
Target Media Hotline, 612-696-3400

Copyright Business Wire 2012

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Add TGT to portfolio

TGT

Target Corp.

$
50.75

+0.60
+1.20%

Volume: 4.34M
Jan. 24, 2012 4:00p

/quotes/zigman/253872/quotes/nls/tgt

Add TGT to portfolio

TGT

Target Corp.

$
50.75

+0.60
+1.20%

Volume: 4.34M
Jan. 24, 2012 4:00p