<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended April 29, 1995
--------------
Commission file number 1-6049
----------
Dayton Hudson Corporation
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Minnesota 41-0215170
- --------------------------------------------------------------------------------
(State of incorporation or organization) (I.R.S. Employer Identification No.)
777 Nicollet Mall Minneapolis, Minnesota 55402
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (612)370-6948
- --------------------------------------------------------------------------------
None
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report.
The registrant (1) has filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and
(2) has been subject to such filing requirements for the past 90 days.
The number of shares outstanding of common stock as of April 29, 1995 was
71,777,098.
<PAGE>
DAYTON HUDSON CORPORATION AND SUBSIDIARIES
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE NO.
PART I FINANCIAL INFORMATION:
<S> <C> <C>
ITEM 1 - FINANCIAL STATEMENTS
Condensed Consolidated Results of Operations for the Three 1
Months and Twelve Months ended April 29, 1995 and
April 30, 1994
Condensed Consolidated Statements of Financial Position 2
at April 29, 1995, January 28, 1995 and April 30, 1994
Condensed Consolidated Statements of Cash Flows for the 3
Three Months ended April 29, 1995 and April 30, 1994
Notes to Condensed Consolidated Financial Statements 4
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATIONS 5-8
AND FINANCIAL CONDITION
PART II OTHER INFORMATION:
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 9
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K 10
Signatures 11
Exhibit Index 12
</TABLE>
<PAGE>
PART I. FINANCIAL INFORMATION
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED Dayton Hudson Corporation
RESULTS OF OPERATIONS and Subsidiaries
(Millions of Dollars, Except Per Share Data) Three Months Ended Twelve Months Ended
- ------------------------------------------------------------------------------------------------------------
APRIL 29, April 30, APRIL 29, April 30,
(Unaudited) 1995 1994 1995 1994
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REVENUES $ 4,757 $ 4,465 $21,603 $19,658
COSTS AND EXPENSES
Cost of retail sales, buying and 3,504 3,253 15,887 14,444
occupancy
Selling, publicity and administrative 893 820 3,704 3,297
Depreciation 140 129 542 503
Interest expense, net 107 106 427 440
Taxes other than income taxes 95 93 375 351
- ------------------------------------------------------------------------------------------------------------
Total Costs and Expenses 4,739 4,401 20,935 19,035
- ------------------------------------------------------------------------------------------------------------
Earnings Before Income Taxes 18 64 668 623
Provision for Income Taxes 7 25 262 239
- ------------------------------------------------------------------------------------------------------------
NET EARNINGS $ 11 $ 39 $ 406 $ 384
============================================================================================================
PRIMARY EARNINGS PER SHARE $ 0.10 $ 0.48 $ 5.38 $ 5.11
FULLY DILUTED EARNINGS PER SHARE $ 0.10 $ 0.47 $ 5.16 $ 4.89
============================================================================================================
DIVIDENDS DECLARED PER COMMON SHARE $ 0.44 $ 0.42 $ 1.70 $ 1.64
AVERAGE COMMON SHARES OUTSTANDING (Millions):
Primary 72.1 71.9 72.0 71.8
Fully Diluted 76.3 76.3 76.2 76.1
============================================================================================================
</TABLE>
See accompanying Notes to Condensed Consolidated Financial Statements.
1
<PAGE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENTS Dayton Hudson Corporation
OF FINANCIAL POSITION and Subsidiaries
APRIL 29, January 28, April 30,
(Millions of Dollars) 1995 1995* 1994
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS (UNAUDITED) (Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 187 $ 147 $ 181
Accounts receivable 1,610 1,810 1,409
Merchandise inventories 3,031 2,777 2,727
Other 171 225 119
- -----------------------------------------------------------------------------------------------
Total Current Assets 4,999 4,959 4,436
PROPERTY AND EQUIPMENT 9,288 9,009 8,405
Accumulated depreciation (2,700) (2,624) (2,382)
------- ------- -------
Net Property and Equipment 6,588 6,385 6,023
OTHER 353 353 342
- -----------------------------------------------------------------------------------------------
TOTAL ASSETS $11,940 $11,697 $10,801
===============================================================================================
LIABILITIES AND COMMON SHAREHOLDERS' INVESTMENT
CURRENT LIABILITIES
Notes payable and current portion of
long-term debt $ 247 $ 209 $ 167
Accounts payable 1,921 1,961 1,749
Other 1,040 1,220 984
- -----------------------------------------------------------------------------------------------
Total Current Liabilities 3,208 3,390 2,900
LONG-TERM DEBT 4,922 4,488 4,454
DEFERRED INCOME TAXES AND OTHER 583 582 543
CONVERTIBLE PREFERRED STOCK 357 360 366
LOAN TO ESOP (151) (166) (204)
COMMON SHAREHOLDERS' INVESTMENT 3,021 3,043 2,742
- -----------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND COMMON
SHAREHOLDERS' INVESTMENT $11,940 $11,697 $10,801
===============================================================================================
COMMON SHARES OUTSTANDING (Millions) 71.8 71.7 71.6
===============================================================================================
</TABLE>
* The January 28, 1995 Consolidated Statement of Financial Position is condensed
from the audited financial statements.
See accompanying Notes to Condensed Consolidated Financial Statements.
2
<PAGE>
CONDENSED CONSOLIDATED Dayton Hudson Corporation
STATEMENTS OF CASH FLOWS and Subsidiaries
<TABLE>
<CAPTION>
(Millions of Dollars) Three Months Ended
- --------------------------------------------------------------------------
APRIL 29, April 30,
(Unaudited) 1995 1994
- --------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES
Net earnings $ 11 $ 39
Reconciliation to cash flow:
Depreciation 140 129
Deferred tax provision (4) (7)
Other noncash items affecting earnings 23 25
Changes in operating accounts
providing/(requiring) cash:
Accounts receivable 200 127
Merchandise inventories (254) (230)
Accounts payable (40) 95
Other (126) (19)
- --------------------------------------------------------------------------
Cash Flow (Required)/Provided by Operations (50) 159
==========================================================================
INVESTING ACTIVITIES
Expenditures for property, net (347) (213)
- --------------------------------------------------------------------------
Cash Flow Required for Investing
Activities (347) (213)
- --------------------------------------------------------------------------
Net Financing Requirements (397) (54)
==========================================================================
FINANCING ACTIVITIES
Decrease in notes payable - (7)
Additions to long-term debt 490 -
Reduction of long-term debt (17) (24)
Dividends paid (37) (36)
Other 1 (19)
- --------------------------------------------------------------------------
Cash Flow Provided/(Used) by
Financing Activities 437 (86)
==========================================================================
Net Increase/(Decrease) in Cash and
Cash Equivalents 40 (140)
Cash and Cash Equivalents at Beginning
of Period 147 321
- --------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF
PERIOD $ 187 $ 181
==========================================================================
</TABLE>
Amounts in this statement are presented on a cash basis and therefore may differ
from those shown elsewhere in this 10-Q report.
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid (including interest capitalized) in the first three months of 1995
and 1994 was $64 million and $59 million, respectively. Income tax payments of
$127 million and $106 million were made during the first three months of 1995
and 1994, respectively.
See accompanying Notes to Condensed Consolidated Financial Statements.
3
<PAGE>
NOTES TO CONDENSED CONSOLIDATED Dayton Hudson Corporation
FINANCIAL STATEMENTS and Subsidiaries
ACCOUNTING POLICIES
The accompanying condensed consolidated financial statements should be read in
conjunction with the financial statement disclosures contained in the
Corporation's 1994 Annual Shareholders' Report throughout pages 21-32. As
explained on page 31 of the Annual Report, the same accounting policies are
followed in preparing quarterly financial data as are followed in preparing
annual data. In the opinion of management, all adjustments necessary for a fair
presentation of quarterly operating results are reflected herein and are of a
normal, recurring nature.
Due to the seasonal nature of the retail industry, earnings for periods which
exclude the Christmas season are not indicative of the operating results that
may be expected for the full fiscal year.
PER SHARE DATA
Primary earnings per share equal net earnings, less dividend requirements on
ESOP preferred stock, divided by the average number of common shares and common
share equivalents outstanding during the period. Fully diluted earnings per
share assumes conversion of the ESOP preferred stock into common stock. Net
earnings are also adjusted for the additional expense required to fund the ESOP
debt service which results from the assumed replacement of the ESOP preferred
dividends with common stock dividends.
References to earnings per share relate to fully diluted earnings per share.
4
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF OPERATIONS AND FINANCIAL CONDITION
FIRST QUARTER 1995
ANALYSIS OF OPERATIONS
First quarter net earnings were $11 million, compared with $39 million last
year. Earnings per share for the first three months were $.10, compared with
$.47 per share for the same period last year.
The following table illustrates the impact of the major factors contributing to
the changes in earnings per share:
<TABLE>
<CAPTION>
First Quarter
------------------------------------------------
<S> <C>
1994 Earnings Per Share $ .47
Changes in earnings per share:
Revenues .31
Gross margin rate (.38)
Operating expense rate (.34)
Interest expense, net (.01)
Corporate expense and other .05
------------------------------------------------
1995 Earnings Per Share $ .10
================================================
</TABLE>
The earnings shortfall in the first quarter was primarily due to weak
performance at Mervyn's and slightly weaker-than-expected sales at the
Department Store Division (DSD). Once again Target reported solid results. For
first quarter, the overall gross margin rate declined as a result of Target's
impact on the mix, as well as poor sales results and increased markdowns at both
Mervyn's and DSD. The consolidated operating expense rate increase over prior
year was primarily the result of lower sales leverage. Due to significant
growth at Target, our lowest margin and expense rate division, the Corporation's
overall revenue growth and operating expense rate were favorably affected, while
the gross margin rate was unfavorably affected.
Revenues
- --------
Total revenues increased 7% in the first quarter, while comparable-store
revenues (revenues from stores open longer than a year) rose 1%.
5
<PAGE>
Revenues by business segment were as follows:
<TABLE>
<CAPTION>
First Quarter Percentage Change
------------------- ------------------
APRIL 29, April 30, All Comparable
(Millions of Dollars) 1995 1994 Stores Stores
--------- -------- ------ ------
<S> <C> <C> <C> <C>
Target $3,157 $2,819 12% 4%
Mervyn's 914 960 (5) (7)
Department Store Division (DSD) 686 686 0 0
------ ------ -- --
Total $4,757 $4,465 7% 1%
====== ====== == ==
</TABLE>
Overall, first quarter 1995 revenues were negatively affected by a general
softening in the retail industry. Target's strong total revenue growth was
primarily the result of new store expansion and was also aided by higher finance
charge and late fee revenues associated with the expansion of the new Target
proprietary credit card. Mervyn's total and comparable-store revenues decline
was the result of industry-wide softness in apparel sales as well as
insufficient promotional intensity in a value-conscious environment. DSD's
total and comparable-store revenues remained unchanged from last year's strong
growth.
Operating Profit
- ----------------
Overall operating profit declined significantly for the first quarter, primarily
the result of weak sales and earnings results at Mervyn's and also lower-than-
anticipated sales at DSD. (Operating profit is LIFO earnings from operations
before corporate expense, interest and income taxes.)
TARGET'S operating profit for the first quarter increased moderately over the
same period last year. The gross margin rate improved due to slightly higher
markup associated with the mix of merchandise sold, partially offset by a slight
increase in the markdown rate. Looking forward to the balance of 1995, Target's
gross margin rate is expected to remain relatively stable. For the quarter,
Target's operating expense rate increased due to higher marketing expenses, as
well as higher store expenses associated with enhanced guest services.
MERVYN'S operating profit was essentially zero for the first quarter,
representing a steep decline from the same period last year. The gross margin
rate deterioration from the prior year was due to higher promotional and
clearance markdowns. The operating expense rate unfavorability was attributable
to lower sales leveraging and, to a lesser degree, higher marketing expenses.
Looking forward, promotional markdowns are expected to increase to an even
greater degree due to the implementation of Mervyn's former proven strategy.
Through this strategy, Mervyn's intends to bring greater competitive value to
its customers by offering a higher percentage of merchandise on sale, more
frequently. Management expects to realize higher sales from this strategy
before fully realizing the corresponding operating profit benefit. Accordingly,
Mervyn's second quarter operating profit is expected to be significantly below
the prior year. Management expects stronger performance from Mervyn's for Fall
season as compared to the first half of 1995. Mervyn's long-term objective is
to balance its profit formula under this framework by restoring the gross margin
rate to recent historical levels and improve the operating expense rate
leveraging through revitalization of the sales performance.
6
<PAGE>
DSD experienced a moderate decline in operating profit compared with a strong
first quarter a year ago. The gross margin rate decline was due to higher
markdowns. The operating expense rate rose due to higher depreciation on newly
remodeled stores, increased buying and occupancy costs and lower sales leverage
as a result of unchanged revenues.
Other Performance Factors
- -------------------------
The last-in, first-out (LIFO) provision, included in cost of retail sales, was
zero for both first quarter 1995 and 1994. Management expects a small LIFO
charge for the total year based on slight inflation in retail prices. The
cumulative LIFO provision was $61 million at April 29, 1995 and January 28,
1995, and $80 million at April 30, 1994.
Net interest expense for the quarter increased $1 million over last year, as
higher average debt balances were substantially offset by lower average
portfolio interest rates. Looking forward to the remaining periods in 1995,
interest expense is expected to increase over last year due to additional
borrowing requirements for the funding of new stores, remodeling programs and
internal credit expansion, partially offset by moderately lower interest rates.
The estimated annual effective income tax rate is 39.5% for 1995. This compares
with an estimated rate of 39.0% in first quarter 1994.
ANALYSIS OF FINANCIAL CONDITION
Our financial condition remains strong. Our ratio of debt (including the
present value of operating leases) to total capitalization was 59% at the end of
first quarter 1995, compared with 58% a year ago and 57% at year-end. The
higher rate at the end of first quarter reflects the additional capital invested
in new stores and store remodels, as well as for our credit expansion.
At April 29, 1995, working capital was $1,791 million, 17% higher than a year
ago, primarily due to growth in accounts receivable. Accounts receivable
increased 14% over last year, reflecting the planned growth of internal credit
sales associated with changes in payment terms at DSD and Mervyn's and the
expansion of Target's proprietary credit card. Compared with year end, the
accounts receivable balance declined 11%, reflecting the typical reduction from
seasonal high levels. Merchandise inventories and accounts payable increased
11% and 10%, respectively, compared to first quarter 1994, primarily as a result
of new store growth. Merchandise inventories were slightly higher than plan at
all three operating divisions at the end of first quarter.
First quarter 1995 capital expenditures were $347 million, compared with $213
million for the same period a year ago. Approximately 58% of these expenditures
were made by Target, 30% by Mervyn's, 9% by DSD and 3% by Corporate. Mervyn's
capital expenditures primarily represent the acquisition of several real estate
sites in the Minneapolis-St. Paul market.
7
<PAGE>
During first quarter, the Corporation issued $150 million of long-term debt at
7.5%, maturing in 1999. The proceeds from the issuance were used for general
corporate purposes. Other additions to long-term debt reflect commercial paper
borrowings. Subsequent to the first quarter end, the revolving credit
agreements were renegotiated to extend the term and increase the total line of
credit from $1 billion to $1.4 billion, $840 million of which is long term. The
revolving credit agreements support our commercial paper borrowings. There
were no balances outstanding on the revolving credit agreements during the
quarter and looking forward, management does not expect to borrow against the
agreements in 1995. Management is currently evaluating an accounts receivable
securitization transaction as a lower cost financing vehicle.
On April 12, 1995, the Board of Directors declared a 5% increase in the
quarterly dividend to 44 cents per share.
STORE DATA
At April 29, 1995, Target operated 623 stores in 32 states, Mervyn's operated
287 stores in 15 states and DSD operated 63 stores in nine states. During the
quarter, the Corporation opened 15 Target stores and one Mervyn's store. DSD is
in the process of remodeling three of its stores.
Retail square footage was as follows:
<TABLE>
<CAPTION>
APRIL 29, January 28, April 30,
(In thousands) 1995 1995 1994
---------------------------------------------------
<S> <C> <C> <C>
Target 65,855 64,446 59,517
Mervyn's 23,205 23,130 22,528
DSD 13,824 13,824 13,824
----------------------------------------------------
Total 102,884 101,400 95,869
====================================================
</TABLE>
8
<PAGE>
PART II. OTHER INFORMATION
---------------------------
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
a) The Company held its Annual Shareholders' Meeting on May 24, 1995.
c) (1). The shareholders voted for four director nominees for three-year
terms. The vote was as follows:
<TABLE>
<CAPTION>
Affirmative
Name of Candidate Votes Withheld
----------------- ----------- --------
<S> <C> <C>
Rand V. Araskog 64,758,284 850,032
Roger L. Hale 64,720,856 887,460
Michele J. Hooper 64,760,196 848,120
John R. Walter 64,796,528 811,788
</TABLE>
There were no abstentions and no broker non-votes.
(2). The shareholders voted to approve the appointment of Ernst & Young
LLP independent auditors of the Corporation. The vote was
65,196,414 for, 193,577 against and 218,325 abstentions. There
were no broker non-votes.
(3). The shareholders voted to approve the amended short-term incentive
plan. The vote was 61,743,125 for, 2,851,270 against and
1,013,921 abstentions. There were no broker non-votes.
(4). The shareholders voted to approve the Director Stock Option Plan
of 1995. The vote was 49,502,254 for, 14,814,327 against and
1,291,735 abstentions. There were no broker non-votes.
(5). The shareholders voted against a shareholder proposal concerning
ongoing reporting of equal employment and affirmative action. The
vote was 5,563,024 for, 50,281,805 against and 5,487,298
abstentions. There were 4,276,189 broker non-votes.
9
<PAGE>
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits
(2). Not applicable
(4). Instruments defining the rights of security holders, including
indentures. Registrant agrees to furnish the Commission on
request copies of instruments with respect to long-term debt.
(10). Not applicable
(11). Statements re Computations of Per Share Earnings
(12). Statements re Computations of Ratios
(15). Not applicable
(18). Not applicable
(19). Not applicable
(22). Not applicable
(23). Not applicable
(24). Not applicable
(27). Financial Data Schedule
(99). Not applicable
b) Reports on Form 8-K. Registrant did not file any reports on Form 8-K
during the quarter ended April 29, 1995.
10
<PAGE>
Signatures
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
DAYTON HUDSON CORPORATION
Registrant
Date: June 9, 1995 By /s/ Douglas A. Scovanner
-------------------------------
Douglas A. Scovanner
Senior Vice President and
Chief Financial Officer
Date: June 9, 1995 By /s/ J.A. Bogdan
-------------------------------
JoAnn Bogdan
Controller and
Chief Accounting Officer
11
<PAGE>
Exhibit Index
- -------------
(11). Statements re Computations of Per Share Earnings
(12). Statements re Computations of Ratios
(27). Financial Data Schedule
12
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT (11)
DAYTON HUDSON CORPORATION AND SUBSIDIARIES
COMPUTATIONS OF PER SHARE EARNINGS
(In Millions, Except Per Share Data)
Three Months Ended Twelve Months Ended
--------------------------------------- ------------------------------------
APRIL 29, 1995 April 30, 1994 APRIL 29, 1995 April 30, 1994
-------------------- ------------------ ------------------ -----------------
EARNINGS SHARES Earnings Shares EARNINGS SHARES Earnings Shares
----------- -------- -------- --------- -------- --------- -------- --------
Primary Computations
- --------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net earnings $ 11 $ 39 $ 406 $ 384
Less: Dividend requirements on ESOP
preferred stock, net of tax benefit on
unallocated shares (4) (5) (18) (18)
----- ----- ----- -----
Adjusted net earnings $ 7 $ 34 $ 388 $ 366
===== ===== ===== =====
Average common shares outstanding 71.7 71.5 71.5 71.5
Average number of common share equivalents:
Stock options 0.1 0.2 0.2 0.1
Performance shares 0.3 0.2 0.3 0.2
----- ---- ---- ----
Adjusted common equivalent shares
outstanding-primary 72.1 71.9 72.0 71.8
===== ==== ==== ====
PRIMARY EARNINGS PER SHARE $0.10 $0.48 $5.38 $5.11
===== ===== ===== =====
Fully Diluted Computations
- --------------------------
Net earnings $ 11 $ 39 $ 406 $ 384
Less: Earnings impact of assumed ESOP
preferred share conversion, net of tax benefit
on unallocated shares (3) (3) (13) (13)
----- ----- ----- -----
Adjusted net earnings $ 8 $ 36 $ 393 $ 371
===== ===== ===== =====
Average common and common equivalent
shares-primary 72.1 71.9 72.0 71.8
Additional common share equivalents
attributable to application of the treasury stock
method 0.1 0.1 - -
Assumed conversion of ESOP preferred shares 4.1 4.3 4.2 4.3
----- ---- ---- ----
Adjusted common equivalent shares
outstanding-fully diluted 76.3 76.3 76.2 76.1
===== ==== ==== ====
FULLY DILUTED EARNINGS PER SHARE $0.10 $0.47 $5.16 $4.89
===== ===== ===== =====
AVERAGE ALLOCATED ESOP PREFERRED
SHARES OUTSTANDING (IN MILLIONS) 2.3 1.8 2.1 1.6
===== ==== ==== ====
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT (12)
DAYTON HUDSON CORPORATION AND SUBSIDIARIES
COMPUTATIONS OF RATIOS OF EARNINGS TO FIXED CHARGES
FOR THE THREE MONTHS ENDED APRIL 29, 1995 AND APRIL 30, 1994
AND FOR THE FIVE YEARS ENDED JANUARY 28, 1995
(Millions of Dollars)
Three Months Ended Fiscal Year Ended
------------------- --------------------------------------------------
Apr. 29, Apr. 30, Jan. 28, Jan. 29, Jan. 30, Feb. 1, Feb. 2,
1995 1994 1995 1994 1993 1992 1991
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Earnings:
Consolidated net earnings............. $ 11 $ 39 $ 434 $ 375 $ 383 $ 301 $ 412
Income taxes.......................... 7 25 280 232 228 171 249
-------- -------- -------- -------- -------- ------- --------
Total earnings...................... 18 64 714 607 611 472 661
-------- -------- -------- -------- -------- ------- --------
Fixed charges:
Interest expense...................... 111 108 439 459 454 421 333
Dividends on preferred stock
(pre-tax basis)...................... 10 10 39 39 39 39 39
Interest portion of rental expense.... 16 12 56 45 43 39 46
-------- -------- -------- -------- -------- ------- --------
Total fixed charges................. 137 130 534 543 536 499 418
Less:
Dividends on preferred stock
(pre-tax basis)...................... (10) (10) (39) (39) (39) (39) (39)
Capitalized interest.................. (3) (1) (7) (5) (6) (11) (8)
-------- -------- -------- -------- -------- ------- --------
Fixed charges in earnings............. 124 119 488 499 491 449 371
-------- -------- -------- -------- -------- ------- --------
Earnings available for fixed charges.. $ 142 $ 183 $1,202 $1,106 $1,102 $ 921 $1,032
======== ======== ======== ======== ======== ======= ========
Ratio of earnings to fixed charges.... 1.04 1.40 2.25 2.04 2.06 1.85 2.47
======== ======== ======== ======== ======== ======= ========
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
DAYTON HUDSON CORPORATION'S FORM 10-Q FOR THE FIRST QUARTER ENDED APRIL
29, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> FEB-03-1996
<PERIOD-START> JAN-29-1995
<PERIOD-END> APR-29-1995
<CASH> 187
<SECURITIES> 0
<RECEIVABLES> 1,658
<ALLOWANCES> 48
<INVENTORY> 3,031
<CURRENT-ASSETS> 4,999
<PP&E> 9,288
<DEPRECIATION> 2,700
<TOTAL-ASSETS> 11,940
<CURRENT-LIABILITIES> 3,208
<BONDS> 4,922
<COMMON> 72
357
0
<OTHER-SE> 2,949
<TOTAL-LIABILITY-AND-EQUITY> 11,940
<SALES> 4,654
<TOTAL-REVENUES> 4,757
<CGS> 3,504
<TOTAL-COSTS> 3,504
<OTHER-EXPENSES> 1,112
<LOSS-PROVISION> 16
<INTEREST-EXPENSE> 107
<INCOME-PRETAX> 18
<INCOME-TAX> 7
<INCOME-CONTINUING> 11
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 11
<EPS-PRIMARY> 0.10
<EPS-DILUTED> 0.10
</TABLE>
