Target to Weigh Options for Credit Card Assets

Retailer Target said on Wednesday it would review options, including a possible sale for its credit-card receivables, and it would also evaluate its use of debt and the pace of stock buybacks.

The company's shares were up 2.2 percent at $64.11 in extended trading after the announcement.

The credit-card assets are valued at about $7 billion, the company said in a statement.

Chief Financial Officer Doug Scovanner said in the statement the company would look to determine whether it or a financial institution was better suited to own the credit-card assets, which include the Target Visa Card and Target Credit Card, gift cards and other financial products.

"Regardless of whether or not our review results in a receivables sale, we intend to maintain our core financial services operation," Target's statement added.

The retailer said its credit-card portfolio had "strong double-digit growth" and added that the review of its debt would include an analysis of the appropriate use of proceeds should any or all of the credit assets be sold.

The company added that Goldman Sachs was advising it in the review.