Target Corporation May 2008 Sales Call Transcript

Target Corporation (TGT)

May 2008 Sales Call

June 5, 2008 8:00 am ET

Unidentified Executive

The comments on reported results in this summary relate to Target Corporation sales for the four-week period ended May 31, 2008, compared to the four-week period ended June 2, 2007. These sales results are included in the table of our sales release issued on June 5, 2008.

For the fiscal May period, reported comparable store sales decreased 0.7%. This sales performance was the result of a decline in the number of transactions, partially offset by an increase in average transaction size. Comparable store sales in May 2007 increased 5.8%.

The current month sales release quotes Gregg Steinhafel, President and Chief Executive Officer of Target Corporation, as saying “our comparable stores sales performance in May was in line with our planned range.”

The merchandise categories with the strongest comparable store sales growth during the month included healthcare, electronics and consumables/perishables. The categories with the weakest comparable store sales performance for the month included men’s apparel, jewelry/accessories, and lawn and patio.

Target’s strongest comparable store sales performance in May was in the Midwest region, with particular strength in smaller markets within the region. The Northeast region had the softest comparable stores sales in the month with below-average performance in several large metro markets. In addition, we continue to see weakness in Florida, Arizona, Nevada, and parts of California.

At month end, our inventory was in very good condition, reflecting continued strong control of merchandise receipts.

Looking forward to June, our comparable store sales results will compare the five weeks ended July 5, 2008 to the five weeks ended July 7, 2007. We expect our comparable store sales for this period to lie in the range of minus 2% to zero. For perspective, comparable store sales for the five-week period in June 2007 increased 3.3%.

Target’s current sales disclosure practice includes a sales recording on the day of our monthly sales release. Our next sales recording is expected to be issued on Thursday July 10^th, and may be accessed by calling 612-761-6500.

Statements regarding sales expectations are forward-looking statements and should be read in conjunction with the cautionary statement in Exhibit 99(a) to the company’s Q1 2008 Form 10-Q.

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