Some Highlights from Target's Q3 Conference Call - Target (NYSE:TGT)

Below are some highlights from Target's

TGT

third-quarter conference call:

In the U.S., comparable sales trends were fairly consistent throughout the quarter, but were softer than expected in October as consumers witnessed the dysfunction in Washington.
Target's sales continue to be driven by a small decline in transactions which is being more than offset by an increase in average transaction size.
Sales penetrations of REDcards, Target's 5 percent rewards program, continue to grow, which seems to imply that customers are deepening their relationship with Target.
Households who applied for and activated a new REDcard increased their spending at Target by about 50% on average.
Third quarter interest expense declined $27 million or 14% from last year.
No shares were repurchased in the third quarter because of the incremental dilution occurring in the Canadian sector.
Target believes that they will have the capacity within their rating objectives to return up to $4 billion through share repurchase in 2014.
Target is planning for flat comparable sales in the U.S. for the fourth quarter, given there are six fewer shopping days between Thanksgiving and Christmas, the current state of the consumer, and the expectation for a very promotional and competitive environment.
The pace of digital sales growth so far this month has been on plan and much stronger than seen so far this year.
Target continues to see double-digit growth in overall digital traffic and triple-digit growth in mobile.
Mobile is a much higher percentage of digital traffic compared with some of Target's closest competitors.
Target enters the holiday season with a very liquid inventory position. At the end of the third quarter, their average inventory per U.S. store was up only 1%.
Saw a much lower than expected gross margin rate of about 15 percent in the Canadian segment.

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