Revenue

6 Months Ended

Jul. 29, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

Merchandise sales represent the vast majority of our revenues. We also earn revenues from a variety of other sources, most notably credit card profit-sharing income from our arrangement with TD Bank Group (TD).

Revenue	Three Months Ended				Six Months Ended
(millions)	July 29, 2023		July 30, 2022		July 29, 2023		July 30, 2022
Apparel & accessories (a)	$	4,101	$	4,617	$	8,068	$	8,856
Beauty & household essentials (b)	7,513		7,208		15,195		14,261
Food & beverage (c)	5,392		5,268		11,389		10,773
Hardlines (d)	3,383		3,866		6,774		7,579
Home furnishings & décor (e)	3,955		4,647		7,810		8,918
Other	40		47		96		96
Sales	24,384		25,653		49,332		50,483
Credit card profit sharing	169		181		343		366
Other	220		203		420		358
Other revenue	389		384		763		724
Total revenue	$	24,773	$	26,037	$	50,095	$	51,207

(a)Includes apparel for women, men, boys, girls, toddlers, infants and newborns, as well as jewelry, accessories, and shoes.

(b)Includes beauty and personal care, baby gear, cleaning, paper products, and pet supplies.

(c)Includes dry grocery, dairy, frozen food, beverages, candy, snacks, deli, bakery, meat, produce, and food service in our stores.

(d)Includes electronics (including video game hardware and software), toys, entertainment, sporting goods, and luggage.

(e)Includes furniture, lighting, storage, kitchenware, small appliances, home décor, bed and bath, home improvement, school/office supplies, greeting cards and party supplies, and other seasonal merchandise.

Merchandise sales — We record almost all retail store revenues at the point of sale. Digitally originated sales may include shipping revenue and are recorded upon delivery to the guest or upon guest pickup at the store. Sales are recognized net of expected returns, which we estimate using historical return patterns and our expectation of future returns. As of July 29, 2023, January 28, 2023, and July 30, 2022, the accrual for estimated returns was $177 million, $174 million, and $175 million, respectively.

Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance.

Gift Card Liability Activity	January 28, 2023		Gift Cards Issued During Current Period But Not Redeemed (b)		Revenue Recognized From Beginning Liability		July 29, 2023
(millions)
Gift card liability (a)	$	1,240	$	399	$	(679)	$	960

(a)Included in Accrued and Other Current Liabilities.

(b)Net of estimated breakage.

Other Revenue

Credit card profit sharing — We receive payments under a credit card program agreement with TD. Under the agreement, we receive a percentage of the profits generated by the Target Credit Card and Target MasterCard receivables in exchange for performing account servicing and primary marketing functions. TD underwrites, funds, and owns Target Credit Card and Target MasterCard receivables, controls risk management policies, and oversees regulatory compliance.

Other — Includes advertising revenue, Shipt membership and service revenues, commissions earned on third-party sales through Target.com, rental income, and other miscellaneous revenues.