Target to resume a $10 billion share buy-back program
-- Home Textiles Today, 1/14/2010 12:45:00 PM
Minneapolis – Attributing improvements in both its own business and in the general economy, Target Corp. said it will resume a $10 billion share buy-back program.
The 1,744-unit discount department store chain halted its stock repurchase in November 2008 to focus on trying to preserve cash and debt ratings during what it called "an exceptionally challenging environment."
But Gregg Steinhafel, chairman, president and ceo, today said that better results in its stores and credit card business prompted the move, along with what he described as carefully controlled expenses that combined to help the company generate more cash.
Last week, better-than-expected customer traffic helped Target’s December sales rise. Sales in stores that had been open at least one year rose 1.8% during the five weeks ended Jan. 2. Through its fiscal year-to-date, sales in stores open at least one year fell 2.7% while total sales rose less than 1% to $59.15 billion.
At the end of the third quarter, Target had acquired 95.2 million shares for about $4.9 billion, or half of the amount authorized by the company's board in late 2007.
Executives expect to complete the program in two or three years.
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