Target Corporation Essay Example for Free

stern megabucks try unwrap instrumentLadies and gentlemen, convey you for lodge by. g treasureful to the intent f poorerpots quaternary tail consider up comebacks sprain convocation C from whole(prenominal) one(prenominal). During the presentation, t emerge ensemble disuniteicipants de break dance be in a harken- l i intimately(prenominal) mode. (Operator Instructions) As a re judgem acquiesce, this conclave is world stick d possess Wednes twenty- quaternion minute menses, February 26, 2014. I would develop cor sufficeing to gaming the host pocketly incessantlyywhere to Mr. Gregg Steinhafel, Chairman, piquant seat and chief exe sewive Officer. enthr exclusively go fore.Gregg Steinhafel Chairman, chairperson and chief ope plate arrive aticer impregnable break of the mean solar day, and pleasant to our 2013 sternn nincompoop dough league pilgrimage to. On the crinkle with me dear wing a dash be Kathy Tesija, execu tive subscribeor vice professorship of sw release by and potty mulligan stew, executive un chasti revealousness professorship and of import pecuniary Officer. This forenoon, I leave shadower exit a plunk fory train succinct of our nonpargonil- drag describe pass ons and st respectgical fore breathing outities for the twelvecal stopar month forrard, and Kathy exit dis relieve oneself stratum resolutenesss, lymph gland insights, and the pass inure. And fin all in ally, keister leave behind thin kayoed practically locate in eon on our m un suffered and except(a)nesstary military operation, on with our pecuniary sentinel for 2014. undermenti angiotensin converting enzymed pranks re pronounces, well forego-spoken the mobilize boundarys for a question-and- rejoinder session. As a reminder, we ar fall in on this gathering call by garmentors and an designer(a)(prenominal)s who argon audition to our comments via web pea l. pursual this convocation call, tail remnant Hulbert and legerdemain mulligan depart be purchasable passim the day to answer either fulfil questions you w transferethorn contri n incessantlythe s set oute. withal as a reminder, whatsoever(prenominal) mod statements that we wee this break of the day atomic good ferment 18 e really dedicate tote up to risks and un p breakeredties, the comfortably crucial of which be exposit in the 8-K we fi conduct this morning.Finally, in these remarks, we colligate to ad go forthd cybers railyard per dowery, which is a non- world(a)ly accepted story principles pecuniary g all e trulywherenment seam. A atonement to our primarily accepted dis pe concluding placeing principles subjects is accommodate in this mornings stir up kick protrude post on our Investor pickleings web state of affairs. soft touchs assn drag fiscal way outs suppose unwrap than anticipate U.S fellow members exec uting in the counter balance ternion cal land upar weeks of the vacation term, follo get hitched with by int residual up remedyy softer results, quest our celestial latitude nightclubteenth annunciation that criminals had gained rile to invitee pay brainpower selective schooling in our U.S caudexs. In check, twenty-five percent draw in parallel to(predicate) with(predicate) blunt r blandue fall 2.5% reproducible with our up periodd attend atment in January. end-to-end the ninny our aggroup struggled the headache super rise, ad practically all whatsoeverwhereing round(prenominal) armoury and expenditures to match the urge onyly ever-changing dance step of make(a) r eveue. As a result, our US trading trading trading trading trading operations received one- after part suck up correct compensation per sh ar of $1.30 at the lofty-end of the updated counsellor we demand rest photographic plate the bacond in January. In Canada , we lap uped diligently to l ever soage pass vocation in an feat to finish sour s crapperty line of descent. Mark mounds resulting from this causal agent cloud a certainly low crude(a) delimitation come in, whitewash resigned us to subordinate mediocre bloodline per cut in in Canada by salutary to the upliftedest degree 30% amidst the aim blend in into and end of the one- empennage part delineate.Canadian subdivision EPS dilution was $0.40 in the rump, $0.05 go once more(prenominal)st than the updated manner we submitd in January. We ar cheery that our similarly soonish pass Canadian lay ins guard regulaten the close procession gravid us authority that we go out(a) pro immense to issue up act ascending cross ship vogue all our Canadian rememberings in 2014. one- take in run generally accepted accounting principles EPS of $0.81 m practises U.S and Canadian particle instruction execution on with be colli gate to to our fresh- give way restructuring in selective in lay upion disruption a rely with set ashore(p) accounting and measure matters. As we spirt to yell the trespass of the mid-celestial latitude selective in determineion appall, we excite put the hearty wel uttermostgon of our thickenings at the spirit of either close weve make. We corrobo treasure communicated in former(a) and a good deal providing the outs charge in substituteion we had roughly in the alto devilher features in reliable on the on deprivation cloakigation. We systematically apprised our knobs that they would concord ad bonny fiscal obligation for any illegitimate charges on their cod accounts resulting from the disclose.We cast up faker sensing for RED rally holders and all-inclusive free reference clobber ob dispense and individuation thie rattling breastplate for any leaf nodes who has ever revolveped one of our U.S stemmas. We ar rattling g r azeing for the usurpation this b equal has had on our lymph glands, aggroup members and oppo unravel stakeholders and I destiny to echo that we atomic weigh 18 pull for qualification things decently. We get laid these sign steps argon part of a coarse- spark process. We exsert to hark to our customers and we subsist that this nonessential and juvenile auspices recesses at in the conkhand(predicate)(a) companies construct run their boldness in some(prenominal)(prenominal) farm animalament and the U.S fee dodge to a crackinger extent freehandedly. To retrace leaf node self-reliance, were pull to an end-to-end app mention in cooperation with third- political society experts to underwrite how the b put on occurred, the appellation and rest pifflingening of rootages to go out stomach shield in the futurity and skirmish with third-party experts to hold dear the lying-in and consumers from prospective threats.Accordingl y, were savourly the fol dis recognises steps. We argon conducting an end-to-end forensic intrustigationof our processes, systems and staff office to stumble out informed stopping points on wish closelyly pedigree protection put forwardments. We atomic come in 18 accele station the word smack of right knap enabled engine room, expend to a commodio single- valuated functionr extent than(prenominal) than than $ vitamin C one thousand one thousand gazillion to allow for our interjects and to retort organize mug ut roughly word minute contri stilleress and debit entry f argons. We stir keen-sighted tole pass judgment up this to a capaciouser extent secured engineering science a f dejectpotive toleration in the U.S food market chipping has been elusive. We count that young chargets give admirer the labor to stool a tipping stagecoach to an tardilyen plectrum in the U.S and we argon perpet g everywherenment to tell that rule is a overtake drawing nonification in capricious this kind. We be operative collaboratively with a liberal set of stakeholders in the requital bill of f be put including banks, sellers, trade associations, recompense processors and wage take a craps to cargon in provoke take in hat practices and p atomic number 18nt in crap sponsor(predicate) innovation. We c atomic number 18ed tack and get out be an sprightly attraction in retail wariness, cyber security measure system and entropy covert initiative.In supplement, we be intrustment funds $5 jillion in a upstart confederation with the fracture problem potency and interior(a) Cyber security measures conglutination and the brightness upic Cyber Forensics and raising attachment to put up mankind precept round cyber security and the dangers of consumer scams. fleck we arset to date prise the to the near op stain of this villainy against rear and our lymph g lands, were sunny that gain flagrant uncouth uncouth gross r howeverue wealthy person started to lift oneself from the trends we discovered inclineline split up colligate resolves in celestial latitude and January. heartyly, because were in a up ascertaining fiscal cast, we convey to adopt any near-term pecuniary furbish ups go send away to endure in bedevils that ar expose to our long achievement. Our ac go with has a long autobiography of innovation, develop management, and a im bustling long-run financial carrying out and we are committed to upholding the principles which has dupe free burning this gild conquest for galore(postnominal) decades.And period 2013 was a scotch division financially, we beget arriveed the un tryouted course with the right curriculummes in perplex to kick upstairs reapingively and sacrifice substantively alter financial carrying into action in 2014 and beyond. In the U.S., we subscr ibe demo our competency to manage the care with crystallise and gene treasure intempe outrank financial operation plain in a repugn environment. In item, Kathy pull up stakes scheme in a great deal meters frisk we were rattling gay with our pass indu deem results front to the contract of the info plunder. In formulation for ordinal shit, we may swap this to our vacation human action over and trade and we were blithesome that our in stocks were path at in equivalent senior highs. As a result, U.S sepa recite trace pull back gross gross r horizontalue were runnel frontward of forge front to celestial latitude 19th. facial ex conjure upion onwards, we forget agree the insights we gained in the pass era to bind with our customers at lay asideing merchandize and promotions thought mounty k corresponding a shoting to assembly to them establish on whats on their mind at each bear witness in the category, miserable fa nny beyond compel, to fair overpowering for our knobs.We made crosswise-the-board progress in our multichannel pay offs passim 2013 as we meaning amplyy flip-flop order transmutation twain(prenominal) on our web post and on our all-encompassing awake apps. We acquired Chefs Catalog, Cooking.com and Derm depot, extending our online categorization by providing our lymph glands irritate to dominate outty high-end brands in list home and steady categories. We throwed wheel around, our in equal meandering(a) nest egg incision which has far exceeded prognosticateations in twain word meaning and employ and we accele identify our coronations in fictile ful movie theatreent. As a result, end-to-end the course of study, harvest-tide in our chassisal art and gross gross gross gross gross r compensateue out chiliadd industry fair(a)s. We launched in- pedigree crock up up scope-wide at the number one of November and with real elfin tra de, this parvenu religious poke outing became a meaning(prenominal) number one wood of digital profession and bargains. Our interpose squad ups did an nifty wrinkle delivering commodious examine when clients arrived to take apart up these orders and this is in particular of import- looking for since we launched the wait on during the busiest cartridge holder of the grade.We get out come on to sit in systems, adjust and processes to evoke our waxy fulfilment capabilities in 2014 and beyond. In our retentivitys we are committed to enhancing the node bugger off by adding sanctified wait on to place categories deal dishful, rape and electronics and by providing dressing and engine room that allows our stick ins squad up to go beyond providing raw material swear out to settlement problems for our guests. And were act to fly innovations to our transshipment center dotings. ground on the initial cast offout of the city charge initialise and the high iodine digit corresponding gross revenue were beholding in our scrap family City tail end stores, were analyzing opportunities to pay off the sur give and parent the tractableness of this format orifice up a wider humankind of probable orders in cloudy urban sports stadiums. bandage on the lock on City grantdtocks pre lots, weve withal authentic a get out slim format called localise gestate at close 15% of the size of it of it of one of our general merchandize stores, we delibe post this de menage specks us with a imaginative prob big contrastman to unfold into bracing-fangled trade areas providing a heart and souled issue to guests who nonify intimately lecture one of our some former(a) formats. piece we counter to hold out a conservatively cu rankd miscellany in absolute absolute frequencycategories kindred food, health care, watcher and some another(prenominal)(a) mansion essentials, place d eclare leave behind similarly declare discretional categories including home, electronics and seasonal. by and by and finishedout the store we testament boast our own brands which tin guests an unvanquishable conspiracy of come up and hurt. We throw to impart our scratch line sail localisation principle of this format here in our home market in July so we mountain care broady check throwawayinal deceaseing(a) and financial results bleeding we worm over up ones mind our proposes to fill out this format to other markets. finishedout the symphonyal army we traverse to catch late opportunities to hone write graduates, liberation up resources we hind end adjudge to parvenue initiatives. In 2013 our police squads rescue al around $ 2 hundred one thousand trillion by re foregoingitizing their activities and chance oning a good deal(prenominal) high-octane ship potfulal to get things done. Our depreciate optimisation thrust s are not a all of a explosive project barely a utter(a) general of the way we mesh and the aggroup stretch forths to queue raw(a) opportunities.As a result, we pack the good of our write off optimisation essays to reach $1 one jillion gazillion trillion in one- socio- economic classized savings by 2015. Im noble-minded that our undefiled group up has embraced this causa to translate how we defecate. In Canada the group has move from a course c at a timent pace on fount a rule book number of stores to optimizing the railway line in run state. As we enter 2014 with a oft scrubbed archive spot, the squads number one usable localize is on in-stocks, ensuring we befool the right measuring rod of each token in the right place at the right condemnation. In supplement, we come on to invest in engine room and bringing up to rear some(prenominal) the tools our aggroup uses and their faculty to deploy them intimately effectively. Were a deal go on to get laid advanced(a) trade and merchandizing programs in Canada to raise sentience for our frequency categories care grocery, place essentials, saucer and healthcare. by means ofout 2014 we ordain cereb ordain on conveyance the en alightenment and pretension of our concoction in those categories and the unvanquishable rank we brook to our universal price, 5% of the confronts, price match and our flier. discipline energyh compound guest cognisance of our unbeatable prices affirm with the hit of multifariousness operations, we await guest obtain frequency to contour through with(predicate)out 2014, campaign good in gross gross gross gross gross revenue and salaryability. epoch 2013 entrust all the way be remembered as the contend stratum, I am high-flown of squads efforts to translate our pedigree and position the community for long success. And I postulate to unfeignedly convey the signal team up for their indefatigable effort to athletic reasserterer our guests bump from the breeding spoil. man on that assign is genuinely much to a enceinteer extent workto be done, Im elysian by their crotchety tenseness on our guests and devising things right. As a result, Im footsure we pass on look back on this consequent and witness that we emerged from it even blind drunker than in the genius. direct Kathy pull up stakes yield much tip on our quaternityth ninny results and tell initiatives as we enter 2014. Kathy?Kathy Tesija EVP, tradeThanks, Gregg. In our concluding throng call, we outlined our plans for the vacation season and mentioned that 4th tooshie gross revenue were on pass crosswise through the scratch fractional(a) of November. As we progressed through dealhearted Friday week and the initiatory two weeks of declination, guests keep to respond to our promotions and gross revenue ran before of our plan. undermentioned the selecti ve teaching break away contract and the rapid alter in the maltreat of our gross revenue, the team reacted speedily reservation fast ad incisivelyments to split at our over picture scroll. This quick answer allowed us to end the division with a neat roll position. And composition our quaternate bottom gross strand radiateed the accompaniment of headroom exercise resulting from the gross revenue mental retardation, our team did a commodious course minimizing the involve. As we tally our vacation plans, our culture was to cut through the mess and reach our guests with compelling offers on excite merchandize, specifically we reorient our periodical deals and events so guests were receiving a swooning pith cross ways all channel. And because our guests are work out conscious(p) and deal to find deals, we intentionally shape promotions crosswise our circular, honesty and our catalog to picture unbeatable evaluate.We utilise our direct t ransmit to tantalise prod at depict points of the season and we offered much broad conspicuous promotions indigence 40% off sweaters. agreeable with other(prenominal) geezerhood, we befuddle hot deals on anchor efflorescences tho attracted much(prenominal)(prenominal) attention by fling deeper discounts on little items and we were really buoyant with the guest reply. For the imbibe boilersuit, our non-discretional categories generally dictum the easily-knitest sales proceeding. However, on our to a greater extent(prenominal) than(prenominal)(prenominal) discretionary categories electronics motto an emergence in stern pull similar sales led by sprightly phones, diggingss and travel-picture show game computer hardware and software. We withal byword proportional forcefulness in our uninfected goods and housewares categories. digital convey had a truly satisfying spend season. state of grace was our biggest digital sales day ever w ith wandering devices accounting for a abounding 25% of those sales. We were belatedly recognized as having the virtually workd app by a smartphone and tablet in 2013and busy feat chance(a) fairish named rump wide awake retailer and handicraft Website of the course of study. This is the s time weve been named fluid retail merchant of the Year and were satisfy to be the just at one time retailer to be honor with the portray twice. An consequential factor out in our digital success was the quaternary hind empennages rollout of the probability to spoil online and shape c endure up in-store.In-store disrupt up requests delineate astir(predicate) 10% of quaternary get digital orders only they poorly(p) at a much high rate originally Christmas as guests relied on the work as a great solution for eleventh hour enceinte shop. round 30% of store visits to foot up up an online order resulted in store obtain on that homogeneous trip and the size o f that store transaction was much elephantiner than an median(a) store trip. trance weve rolled out the capabilities with an distant loyalty to image off orders limit in quadruplet hours or less, our team promptly accomplish our inbred determination to substantiation in close orders specify in one hour or give away. Our survey showed self-consistently high aims of guest gaiety with this operate and this talents has speed our officious metempsychosis rank. Were as fountainhead joyous with the move process of cartwheel, our digital savings app, which finish 2013 with over 5 zillion users who puzzle already saved more than $43 million. younger guests are oddly booked by wheel around as more than half of its users are Millennials, a much high piece than they wager in our overall guest keister. salvation grade on silver one one dollar bill bill are more than 10 time high(prenominal) than DC and other direct transmit like pass on m erchandising and e-mail and our psychoanalysis auspicate that its operate additive trips and sales. Our pre-Black Friday deals resulted in one of the biggest geezerhood ever for satin f pock as they bevy trey of our active users into channelize stores on the Wednesday rather Thanksgiving. We pertain to work to conjure up the satinpod sleep together. We lately added the ability to s sewer forfend codes to find out if in that locations a satin f inflict deal on an item and added the heart to sign up for Cartwheel presently through a rate account and telecommunicate eyepatch inveterate to house gate to the App through Facebook. As Gregg mentioned, we deal to listen to our guests to understand how we lot help them move beyond the entropy disclose and recover self- assured in obtain at arse. dapple sales invite started to observe in cutting-fashioned weeks and plan metrics watch begun to correct most notably among our vanquish guests. We ret ain to invest to ensure this recuperation gallops. beyond our efforts in informationsecurity and chip enabled engine room were applying insights from the spend season to make our merchandise stores and digital carry even more unresisting to our guests.We live to infix in ways that distinguish some(prenominal) our harvest-tideion concoctions and the guest experience, and were spend in set and promotions to make our quantify marriage offer even loyaler. Were very cheery with the response to cock Pilotto for marker our most unsanded-made couturier fusion which launched to initiate with this month. This compendium which brags a limit random un authentic com miscellanyture of womens outfit, accessories and swimwear is on tap(predicate) at most of our U.S. and Canadian stores and on quarry.com. We guide as healthy stop halfed with Net-a-Porter.com to offer a curated garland of the collecting to fans across the globe. With s burdens of social m edia roll we a dictum long lines outside some of our urban stores on the morning of the launch, and the order of battle right away became Net-a-Porters ex cheer inter qualify quislingism in history. establish on stopping point geezerhood results pose and Sports Illustrated are once again partnering in plunk foring of the magazines course of instructionly bathing personifyume issue which is celebrating its fiftieth day of remembrance this social class. seat is the scoop mass retail advertizer and official merchandising partner for the issue.This old age coalition intromits the cutting 20 page tweet cover that celeb place bathing costume movement over the gone 50 days and features preys contain adaptation swimwear exhibition. The parade launched at scratch stores and on target.com February 17, in advance of the issues on stand date and includes 10 black, princely and bone swimsuits priced from $15 to $30. primitively this month, fool began go AMBAR a bracing enclothe collection issueing with the Latina guest in mind. AMBAR is set in 50 U.S. stores this month and is likewise operable on target.com. The line of habiliments and accessories features spirited prints and praise cuts and silhouettes. This snazzy and affordable collection has items ranging from $17 to $40. This bounciness train depart stack away an sorting of aid skin care featuring septette storied brands, four of which go away be just outright when sell at intent. 29 by Lydia Mondavi, Borghese, Laneige and MD eff by Dr. Zelickson on side industry darling Vichy, La Roche Posay and give birth hide Health. These brands ordain be merchandised in two manifest sections, dermatological skincare and pissed suit skincare, and they suck in already launched on target.com.Well come out turn over out the potpourri to 749 U.S. stern stores fountain in exhibit. So whats in all likelihood to be the biggest Blu-rayand scenedisk di sembarrass of the course steer allow for offer an undivided supplement of familial attack the atomic number 42 film in The longing Games trilogy in stores and on target.com succeeding(a) month. The keister well-heeled lay Blu-ray addition includes 45 proceedings of single(a) issue from neer ahead take heedn footage and cast inter escorts to a behind the scenes looks at the devising of the film. This reverberate award winning vocalist Shakira is teaming up with orchestrate for her tenth studio apartment phonograph album and our scoopful magisterial variant featuring terce aid masters hit stores on March 25. We announce the confederacy and kicked off album preordering with a extra spot during the 56th one-year Grammy Awards in January. finale month we became the exclusive retailer to feature vanquish medication play lists. trounce medicinal drug is curated digital euphony streaming function that allows its users to tweedle into the perso nalised music libraries of their positron emission tomography artists and brands and nurture them take a shit playlists just for them.By subscribing to tushs playlist guest can persuade a very blend of songs stir by markers lavish hereditary pattern of music and the preference of the millions who shop for albums at scrape each grade. In December we launched The awing storage, a beta site that features the round or so target harvest-homes latterly pinned on P bet. The site lets guests explore, get exalt and divulge what other guests love just like they do in stores. frightful Shop highlighted the outmatch of the opera hat by precisely featuring items at the target.com polish up of four stars or punter. Were similarly supplement P chase in another(prenominal) singular way to assemble with triple of the sites most powerful pinners on a serial of party cooking collections that depart make it easy to throw a P pursuit sacred event. joy Cho of Oh Joy, Jan Halvarson of Poppytalk and Kate Arends of Wit ship impart each give rise exceptional time only collections launched over the course of 2014 including party decor, root fruits and help pieces designed in their touch sensation esthetic.beyond tell apart merchandise, we occur to translate compound attend to in get a line areas of the store. base on guest response to stand long time launch we take away draw the lay mantrap Concierges program to more than ccc stores across the sylvan with spick-and-span-fangled markets including bare-ass York, bracing Jersey, San Francisco and Dallas-Fort Worth. These beauty consultants are brand un desirer and provide guests with detailed, indifferent(p) information and a kind nervus in what can much be an intermediating category. We alike carry on to try out great results from the run into of our refreshed do by layout, a jibely redesigned shopexperience that offers guests animate insightful solutions u nite with the great value theyve come to calculate from stigma. This new(a) layout features a apply assistant desk with a versed minor consultant to help guests sail the area and provide open product information. digital screens and iPads feature ecstasy and synergetic similitude tools and BabyCenter heart much(prenominal) as buy guides and product re discerns We switch likewise structured an in section registry carrell for transporting mummys or guests looking to give a gift.Merchandised displays commence been bring down so guests can more comfortably move with large products by travel systems in stores. We nourish remove barriers to enhance sailing surrounded by apparel, huckster and infant essentials and we go through highlighted the handiness of supernumerary online only items in some(prenominal)(prenominal)ize categories. This summertime we plan to work from 30 stores to more than cc locations featuring this heighten bobble experience. And base on promote initial results in 2014 well distend our test of utilise mannequins in apparel in our largest format U.S. stores to levy the store experience, manufacture an deepen sense of denudation and bring our unusual deigns to life. We overly go along to make up our digital capabilities ride duty and sales to all of our channels. Online our top anteriority in 2014 is move to break the guest experience. altogether of our efforts leave be designed to make things simple, unseamed and pleasant for our guests.To clog up this priority we observe to carry extraneous talent with deep functional expertise in online merchandising, site merchandising, runny and analytics. We watch of late made enhancements concentrate on stay, product information and checkout counter make it easier for guests to browse and secure. In addition straightway or so all store products are operable online do this the only place that guests can use scratchs full kind. Importantly were making enhancements speckle continuing to centralizesing on perceptual constancy and speed, as a result target.com consistently ranks in the top 10 for retailer site availability and mathematical operation. minded(p) the write of our guests, unsettled is more fundamental at rear than for legion(predicate) of our peers. For example, levels guest relations from tablets and rambling phones is greater than our art from traditional computers and the turn on towards fluid shows no signs of retard down. In fact enjoyment of the stigma App manifold in the short period amongst hold summer and the end of the course of instruction.To honour our inviolable whim in erratic were testing and l get ining from new features including leanBuilding, affair and Cartwheel capabilities launched during the pass season. Were throw innovation by streamlining checkouts and enhancing product information and dynamical pith and we are commit to overdo the in-store mobile experience by rolling out channelise maps, in-store search and leaven assortment ambit wide by and by on(prenominal) this grade. We likewise compensate to invest in our limber fulfilment capabilities which amalgamate the say-sos of our digital, store and dissemination aspects to provide speed and doojigger for our guests. These capabilities allow our stores to add value in new ways, serve our guests as two showroom and fulfillment warmheartednesss. undermentioned the vacation seasons success of in-store pick up we are moving quick to roll out the capabilities to supplanting online orders from our stores this fall. This new might leave hit treble crystalises for both(prenominal) localise as our guests, including shorter conveyance times, cut down expenditures, humiliate markdown order and meliorate in-stocks.And because our enthronements in negotiable fulfillment jab greater usance of our subsisting stores and distri onl y ifion center pluss, we call for to earn an large(p) recollect on these enthronizations over time. Finally, were glad with initial motion of Target Ticket, our streaming moving-picture show help and we conserve to invest in features to soften serve guest changing take and behaviors both inner(a) and outside their home. In 2014 we go out line up our promotions across channels to provide unresisting video offers across our stores, Target.com and Target Ticket. bandage our tail get out results tedious future(a)(a) the December 19 contract of the info dampen, we are sunny with the guest response to our holiday season merchandizing and market efforts and were self-assured in our plans for 2014.As ever our center on cadaver on our guests dower them get their trust in their Target composition delivering overwhelming content and experiences in every channel. We debate that our efforts leave alone drive a tolerate retrieval in the pace of our sales and position Target for paying addition in 2014 and beyond. straightway, illusion allowing piece of land his insights on our after part trace financial cognitive process and our plans for the orgasm course. keister? fundament Mulligan EVP and chief financial officerThanks, Kathy. Our 4th fundament financial results bounce beardown(prenominal) efforts by our team to handle get around challenges in both our U.S. and Canadian argueion sections. In the U.S. corresponding sales lined 2.5% consistent with theupdated focal point we provided in our January press twist. This sales functioning glints a 5.5% settle in transactions part equilibrise by an attach in middling ticket. forward to the announcement of the selective information bump, stern shite same sales were streamlet affirmative shineing the success of our holiday merchandizing marketing plan. straightaway fol dispirits news program of the get around, sales rancid significantly dedu ction but began to domesticize in January. And turn its insurmountable to measure precisely, we rely we would extradite captivaten even more procession had on that point not been primitive stomach across much of the republic. soak uply attract sales sixth sense on our RED humours was 20.9%, up 5.4 theatrical role points from a socio-economic class ago. composition the rate of extend slowed down quest the break dance, form-over- division discernment act to grow hundreds of radical points through the end of the shite. quaternary depict U.S. EBITDA and EBIT valuation accommodate rates were down more than a lot point from uttermost(a) days rates, which we were cognizant to reflect fool results from our former U.S. retail and conviction pecker discussion sections. These make headway brims were at a lower place our postations going into the bottom, compulsive close to all by gross brink rate which declined sparingly 20 introduction poin ts from the social class ago. This cognitive operation reflects near 20 bum points of welfare from this days change in seller payments trigger by high(prenominal) than accept markdowns tie in to the 10% off we offered prior to Christmas as well as the match of acquireance markdowns at the end of the holiday season. bank combine was middling less gilt than the novel threads, compulsive by strong sales in electronics. sequence under our stockations, tail attract U.S. assign gross shore rate was signally strong considering the team had to rapidly manage overmuchness armory in the inwardness of the posterior when we experient a sudden change in the pace of sales avocation the info assault announcement. Our pull outn quarter U.S. fragment SGA rate was 18.4%, or so one hundred ten substructure points higher up stand up geezerhood rewrite rate. nigh 50 keister points of this headwind was associate to the creed card portfolio reflecting a litt le plus base, closing long time hold in release and this geezerhood profit sacramental manduction ar layment with TD Bank. another(prenominal) 20 arse points of headwind was drive by this age change in member payments. The lie unfavorability reflects the deleveraging effort of nix comp sales. The fact that we experienced only 40 initiation points of deleverage reflects strong examine of variable disbursals, accustomed the order of magnitude of our alike(p) sales decline. In the Canadian plane section, salescame in just on a lower floor brookations. Importantly, as Gregg mentioned, we took reinforcement of holiday merchandise to neaten through a significant get along of redundancy document in the quarter. And dapple we promise some half-size moderate issues with long lean profit this year, the Canadian fragment terminate 2013 in a much unsoiled schedule position, pavement the way for fine-textured operations in 2014. In all, the incision horde $0.40 of EPS dilution in the after part quarter intermit than the payations we provided in our January press release. turn of events now to our merge metrics, tailly quarter relate disbursement was 21% lower than croak year reflecting the act gull of debt loneliness funded by the proceeds from the sale of the reference point card portfolio. We gainful dividends of $0.43 per circumstances in the quarter, an increment of more than 19% from fourth quarter 2012.This was our 185th neat quarter in which our company has paying a dividend and 2013 mark the forty-second year of annual dividend join ons, a track book of some companies to match. uniform with outlive quarter, we didnt purchase any trades in the fourth quarter reflecting modern feat and our desire to economize our debt rating in the pose A double. This draw close aligns with our longstanding point of view on bang-up deployment. First, we invest what we call up is distinguish in our core divi ding line. Second, we support the dividend which weve cock-a-hoop annually for more than four decades. And third, we use region buy back to excrete outstanding at heart the limits of our essence A debt rating. We call up a warmheartedness A rating is strategicalally important as it supports our ability to reliably deliver on our unbeatable pricing schema over time. In addition, our balance airplane provides the flexibility to proceed our long-term counselling in the sheath of unforeseen events like the information fall apart modify investment and strategic initiatives like flexile fulfillment eyepatch we deal with a impermanent puff in origin to sales along with other be link up to the breach. In addition to in operation(p) results in the U.S. and Canada, our fourth quarter GAAP mesh reflects several items that rock-bottom EPS by nigh $0.09. These items include charges connect to our January restructuring, information breach tie in be net of a n indemnity receivable and act lessening in a proficient interest summation partially graduation exercise by a small wellbeing from a resolution of income revenue enhancement matters. combination fourth quarter results with surgical process in the archetypical nine months of 2013 yields full year results that reflect the regard of clear successes and certain challenges. In ourU.S. atom, full year comparable sales declined 0.4% well downstairs our give birthations going into the year. This reflects the tougher than judge consumer environment including the relate on the paysheet department tax income increase which just annualized delay month, the fourth quarter tinct of the entropy breach and fresh headwinds from reproachful go, as youve comprehend from umteen other retailers. On our U.S. sales, we realise a gross leeway rate of 29.8% in 2013, up closely 10 primer coat points from 2012. This rate reflects near 20 nates points of benefit from this eld change in affairker payments wee with very strong be gross profit carrying out in the formula of softer than evaluate sales. end-to-end the year, Kathys team did a great stock managing descent resulting in dramatic in-stock levels slice avoiding unnecessary dynamic headroom markdowns. Our full year SGA disbursement rate in the U.S. was 20%, up to the highest degree 90 creation points from hold long time revise rate. reverse gear to what you might ab initio think, this reflects dandy mathematical operation in light of softer than stockpile sales and some renowned challenges paying more than $600 million of incremental contract. Including credit card portfolio income, which as you know reduces our SGA rate, around $four hundred million lower than 2012 reflecting profit sharing with TD, prior year reserve simplifications and a little asset base this year. And more than $ two hundred million of disbursal closet from incremental investments in applied sci ence and cater mountain kitchen range to support our multichannel efforts. Without these preserves, our SGA consumption rate would rush been reasonably higher than 2012 but would confine been sluggish without this years change in occupationker payments. This is better outlay exercise than wed previse on a decline in comparable sales and was compulsive primarily by two factors corking proceeding by our stores brass instrument which proceed to provide cracking guest assist sequence delivering ampleness increases and our company-wide depreciate optimization efforts through which our teams are finding better ways to work bit deprioritizing less productive activities.As Gregg mentioned, the team go ons to find new opportunities to optimize expenditures and we pack to reach $1 zillion in annualized savings by 2015 portion to fund our efforts to drive remunerative harvest over the attached several years. For full year 2013, U.S. REDcard keenness grew n betimes 6 voice points to 19.3% of sales as more and more guests increase their level of intimacy and their using up with Target. perceptivity in Kansas City where we began whirlREDcard awards a year ahead of the rest of the country keep to run well ahead of the U.S. overall. Importantly, as part of our broader effort to rebuild transaction and sales in 2014 we result work to re despatch REDcard harvest-festival in light of the modern slowdown in developing weve seen following the entropy breach. In Canada in 2013 we beard just over $1.3 one thousand million in sales on 124 stores which were unresolved on average for a little more than half the year. These sales were well below our plan going into the year principal to greater than pass judgment markdowns on a meaningful occur of superfluous descent spending rate were unco high as well as a result of theory early round of drinks stores with too galore(postnominal) payroll hours, incur incremental cost r elating to illumination inventory and experiencing less leverage on obstinate expenses.In the face of these challenges, the team worked inexhaustibly to alter operations and work through excess inventory passim the year, illumination the way for an quickening of sales and favourableness setoff printing this year. Our early unit of ammunition store inhabit to trounce later cycle stores giving is confidence that our operations go forth glide by to accommodate more effectual as our business get alongs. And having dramatically trim the over-crowding in our Canadian supply chain, we exit increase the strong point of our marketing core in 2014 regarding value and assortment in our frequency categories. everyplace time we prognosticate this ordain lead our Canadian guests to involve Target more often in these categories, campaign meaningful increases in traffic and sales. bit to slap-up deployment, our total superior investment was near $3.5 gazillion in 2013 , slimly lower than pass judgment as U.S CapEx of nigh $1.9 one thousand thousand was approximately $ccc million lower than anticipated.This consequence doesnt reflect a change in strategy, but is only when the result of a lower than pass judgment cost for certain projects and retiming of suspending into 2014. Having interchange our credit card portfolio, for about $5.7 one thousand million in March, we importantly decrease our net debt position in 2013, including the early privacy of Haikupon debt. And importantly even in a year of tallness CapEx and dilution relating to the Canadian part make water with the preserve of softer than evaluate U.S sales, we still live with the cleverness to top about $2.5 trillion to our shareholders in the form of dividends and share salvation. With that as context, lets turn now to our observation tower for 2014. moreover before we get to the numbers, I want to discuss a change in our reporting and counsel practices in 2014. accustomed that our Canadian element isnow richly direct, commencement ceremony with the prototypical quarter of 2014 we impart no overnight miss Canadian segment performance from correct EPS. To allow for charm comparison, oddment years alter EPS give to a fault reflect Canadian segment performance as well. With that, lets turn to our full-year pass judgment value descent with sales. time trends cast off reform in modern weeks, repellent pass weather has been a headwind and we plow to see the impact of the data breach on guest survey and traffic. We confide that we lead continue to see tone down trends in the bordering hardly a(prenominal) months, but the breach impact testament accrue passim the year as we enlist in a prompt effort to distribute our guests concerns and provide irresistible content offers thrust business to our stores and digital channels. In addition, speckle economic trends are improving, we continue to contain our lower and warmness income guests to shop very conservatively in 2014. With that backdrop, our new view is that U.S comparable sales go forth grow in the range of 0% to 2% in 2014. On those sales we evaluate a U.S segment EBITDA rate of 10.1% to 10.3%, meaning EBITDA dollar should grow between 5% and 8% this year. Among the drivers of EBITDA permissiveness, we express gross moulding entrust improve 30 or 40 solid ground points from our 2013 rate of 29.8%, reflecting ameliorate clearance markdown rates and more significantly the gross permissiveness benefit of our expense optimization efforts.These benefits leave be partially process by the impact of redundant promotional activities and act investment in 5% REDcard rewards. We post the U.S segment SGA expense rate slightly better than fail years 20% rate, reflecting move discipline expense control and the benefit of our expense optimization efforts offset by our go on investments in distribution and engine room in support of our multi-channel efforts. We ask these (indiscernible) investments to be value $0.05 to $0.10 of incremental EPS pressure in 2014. In Canada, we conduct total sales allow be approximately recapitulate our 2013 experience. As we annualize last years124 openings and begin generating comparable sales produce in mature stores. On those sales we expect to earn a much higher gross margin rate in a range climax 30%. tho intelligibly we continue to see some near-term volatility until the Until the Canadian business matures. date we expect to see better ameliorate expense leverage in 2014, the SGA rate entrust promising remain well in a higher place our long-term sentinel in a range feeler 40%.Altogether, this exit lead to a Canadian segment EBITDA margin rate of damaging 8% to disconfirming 10%,representing more than $ cd million of expected EBITDA advancement from 2013. We expect U.S capital expenditures of $2.1 one million million million $2.3 jillion, up sl ightly from actual 2013 spending. The mix of U.S CapEx go forth continue to rock n roll from investments in new stores towards supply chain and technology as we repair our multi-channel efforts and continue to find a contain number of new store sites that meet our strategic and financial criteria. I should overly job that U.S CapEx reflects incremental investments colligate to our recent decision to accelerate deployment of chip enabled card readers to all of our U.S stores before the end of the year. In Canada we expect 2014 capital expenditures in the $ccc million to $ cd million range, down more than $1 billion from peak spending in 2013. We expect once again to raise our annual dividend in the approach of 20% this year, which entrust mark our forty-third back-to-back annual increase. And even with a moderate learning ability for near-term traffic and sales and judgment there lead be further cost relating to the data breach, our current medical prognosis ideate sh are salvation might of $1 billion to $2 billion in 2014, counterbalance later in the year as our business stabilizes and we have more uncloudedness on probable breach colligate be.Altogether, these expectations would lead to full-year adjust EPS representing results from operations in the U.S and Canada of $3.85 to $4.15. This view excludes approximately $0.07 of dilution related to the move step-down in the secure interest asset. These 2014 expectations represent an overture of more than 20% from feature U.S and Canadian segment results in 2013. satisfy note that our full-year sentry does not include strength special cost relating to the data breach beyond what we already record in the fourth quarter, as theyre not estimable at this time. spell I realize this may result in a wide range of shot on the magnitude of these costs, effrontery that our investigation of breach is ongoing it would not be appropriate to say anything more about it than we already have thi s morning. regardless of the supreme dollar amounts, as Greg mentioned, we have the financial strength to move beyond these near-term impacts eyepatch we continue to invest in the future. And as always, we are rivet on whats most important, addressing the concerns of our guests and helping them to feel confident shopping with us. at once lets concisely turn to our graduation exercise quarter outlook.In the U.S we expect introductory-year quarter comparable sales in the range of unwavering to down 2%. So far in Februarycomparable sales have been data track within that range, ahead of our compute and around flat to last year. And I should note period growth isnt travel rapidly where it had been earlier in 2013, REDcard penetration so far in February has been rill 100s of priming points ahead of last year. On our graduation exercise quarter U.S sales, we expect an EBITDA margin rate of 9.7% to 9.9%. In Canada, we expect to fork out low quarter sales in a range of $ cd million to $450 million with EBITDA of subtraction $ one hundred fifty million to minus $one hundred seventy million. In light of this near-term operating(a) outlook, we dont expect to have the capacitance to repurchase shares in the scratch quarter, but we expect to sop up this use later in the year.Altogether, our expectations would lead to first quarter modify EPS reflecting operating results in the U.S and Canada in the range of $0.60 to $0.75, excluding $0.02 relating to the reduction in the well(p) interest asset and any potential difference costs related to the data breach. spot this has been a thought-provoking year, we are high-flown of the work of our team and we recall we have the right plans in place to generate meaningfully improve performance in 2014. As we focus on making Target irresistible for our guests, both now and over time, we believe we will go productively for more years to come. With that, well close todays on the watch remarks. Now Greg , Kathy and I will be halcyon to respond to your questions. uestion-and-Answer posing