Target To Book a Gain Of Up To $775 Million From Sale Of Pharmacy And Clinics Businesses

Target Corp. said Wednesday that the closing of the sale of its pharmacy and clinic businesses to CVS Health Corp. will result in a pre-tax gain of $575 million to $775 million, to be added to fiscal fourth-quarter results. The discount retail giant said the gain will be excluded from adjusted earnings per share. The after-tax net proceeds are expected to be $1.2 billion, which Target plans to use over time to support its capital priorities, including share repurchases. Target said the closing of the sale will reduce fourth-quarter sales by $500 million. Target's stock, which was still inactive in premarket trade, has lost 3.9% year to date, while the SPDR S&P Retail ETF has dropped 9.1% and the S&P 500 has eased 0.8%.