(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: | ||||||||||||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Emerging growth company |
99 | ||||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL). |
TARGET CORPORATION | ||||||||
Date: November 15, 2023 | By: | /s/ Michael J. Fiddelke | ||||||
Michael J. Fiddelke | ||||||||
Executive Vice President and Chief Financial Officer |
Exhibit 99 | |||||
![]() | |||||||||||
Contacts: | John Hulbert, Investors, (612) 761-6627 | |||||||
Jennifer Kron, Media, (612) 696-3400 |
1Adjusted EPS, a non-GAAP financial measure, excludes the impact of certain discretely managed items. See the tables of this release for additional information about the items that have been excluded from Adjusted EPS. | ||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
(millions, except per share data) (unaudited) | October 28, 2023 | October 29, 2022 | Change | October 28, 2023 | October 29, 2022 | Change | ||||||||||||||||||||||||||||||||
Sales | $ | 25,004 | $ | 26,122 | (4.3) | % | $ | 74,336 | $ | 76,605 | (3.0) | % | ||||||||||||||||||||||||||
Other revenue | 394 | 396 | (0.6) | 1,157 | 1,120 | 3.3 | ||||||||||||||||||||||||||||||||
Total revenue | 25,398 | 26,518 | (4.2) | 75,493 | 77,725 | (2.9) | ||||||||||||||||||||||||||||||||
Cost of sales | 18,149 | 19,680 | (7.8) | 54,333 | 58,283 | (6.8) | ||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 5,316 | 5,219 | 1.8 | 15,525 | 14,983 | 3.6 | ||||||||||||||||||||||||||||||||
Depreciation and amortization (exclusive of depreciation included in cost of sales) | 616 | 597 | 3.2 | 1,793 | 1,770 | 1.3 | ||||||||||||||||||||||||||||||||
Operating income | 1,317 | 1,022 | 28.9 | 3,842 | 2,689 | 42.9 | ||||||||||||||||||||||||||||||||
Net interest expense | 107 | 125 | (14.1) | 395 | 349 | 13.4 | ||||||||||||||||||||||||||||||||
Net other income | (25) | (12) | 115.0 | (64) | (35) | 87.8 | ||||||||||||||||||||||||||||||||
Earnings before income taxes | 1,235 | 909 | 35.9 | 3,511 | 2,375 | 47.9 | ||||||||||||||||||||||||||||||||
Provision for income taxes | 264 | 197 | 34.2 | 755 | 471 | 60.6 | ||||||||||||||||||||||||||||||||
Net earnings | $ | 971 | $ | 712 | 36.3 | % | $ | 2,756 | $ | 1,904 | 44.7 | % | ||||||||||||||||||||||||||
Basic earnings per share | $ | 2.10 | $ | 1.55 | 35.9 | % | $ | 5.97 | $ | 4.11 | 45.4 | % | ||||||||||||||||||||||||||
Diluted earnings per share | $ | 2.10 | $ | 1.54 | 36.3 | % | $ | 5.96 | $ | 4.09 | 45.6 | % | ||||||||||||||||||||||||||
Weighted average common shares outstanding | ||||||||||||||||||||||||||||||||||||||
Basic | 461.6 | 460.3 | 0.3 | % | 461.4 | 462.6 | (0.3) | % | ||||||||||||||||||||||||||||||
Diluted | 462.6 | 462.5 | 0.0 | % | 462.7 | 465.3 | (0.6) | % | ||||||||||||||||||||||||||||||
Antidilutive shares | 3.0 | 1.3 | 2.6 | 1.1 | ||||||||||||||||||||||||||||||||||
Dividends declared per share | $ | 1.10 | $ | 1.08 | 1.9 | % | $ | 3.28 | $ | 3.06 | 7.2 | % |
(millions, except footnotes) (unaudited) | October 28, 2023 | January 28, 2023 | October 29, 2022 | |||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 1,910 | $ | 2,229 | $ | 954 | ||||||||||||||
Inventory | 14,731 | 13,499 | 17,117 | |||||||||||||||||
Other current assets | 1,958 | 2,118 | 2,322 | |||||||||||||||||
Total current assets | 18,599 | 17,846 | 20,393 | |||||||||||||||||
Property and equipment | ||||||||||||||||||||
Land | 6,520 | 6,231 | 6,214 | |||||||||||||||||
Buildings and improvements | 36,627 | 34,746 | 34,279 | |||||||||||||||||
Fixtures and equipment | 8,490 | 7,439 | 7,184 | |||||||||||||||||
Computer hardware and software | 3,312 | 3,039 | 2,899 | |||||||||||||||||
Construction-in-progress | 2,000 | 2,688 | 2,358 | |||||||||||||||||
Accumulated depreciation | (23,781) | (22,631) | (22,013) | |||||||||||||||||
Property and equipment, net | 33,168 | 31,512 | 30,921 | |||||||||||||||||
Operating lease assets | 3,086 | 2,657 | 2,596 | |||||||||||||||||
Other noncurrent assets | 1,376 | 1,320 | 1,705 | |||||||||||||||||
Total assets | $ | 56,229 | $ | 53,335 | $ | 55,615 | ||||||||||||||
Liabilities and shareholders’ investment | ||||||||||||||||||||
Accounts payable | $ | 14,291 | $ | 13,487 | $ | 15,438 | ||||||||||||||
Accrued and other current liabilities | 6,099 | 5,883 | 6,138 | |||||||||||||||||
Current portion of long-term debt and other borrowings | 1,112 | 130 | 2,207 | |||||||||||||||||
Total current liabilities | 21,502 | 19,500 | 23,783 | |||||||||||||||||
Long-term debt and other borrowings | 14,883 | 16,009 | 14,237 | |||||||||||||||||
Noncurrent operating lease liabilities | 3,031 | 2,638 | 2,590 | |||||||||||||||||
Deferred income taxes | 2,447 | 2,196 | 2,240 | |||||||||||||||||
Other noncurrent liabilities | 1,852 | 1,760 | 1,746 | |||||||||||||||||
Total noncurrent liabilities | 22,213 | 22,603 | 20,813 | |||||||||||||||||
Shareholders’ investment | ||||||||||||||||||||
Common stock | 38 | 38 | 38 | |||||||||||||||||
Additional paid-in capital | 6,681 | 6,608 | 6,558 | |||||||||||||||||
Retained earnings | 6,225 | 5,005 | 4,631 | |||||||||||||||||
Accumulated other comprehensive loss | (430) | (419) | (208) | |||||||||||||||||
Total shareholders’ investment | 12,514 | 11,232 | 11,019 | |||||||||||||||||
Total liabilities and shareholders’ investment | $ | 56,229 | $ | 53,335 | $ | 55,615 |
Nine Months Ended | ||||||||||||||
(millions) (unaudited) | October 28, 2023 | October 29, 2022 | ||||||||||||
Operating activities | ||||||||||||||
Net earnings | $ | 2,756 | $ | 1,904 | ||||||||||
Adjustments to reconcile net earnings to cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 2,072 | 2,004 | ||||||||||||
Share-based compensation expense | 176 | 177 | ||||||||||||
Deferred income taxes | 252 | 548 | ||||||||||||
Noncash losses / (gains) and other, net | 101 | 141 | ||||||||||||
Changes in operating accounts: | ||||||||||||||
Inventory | (1,232) | (3,215) | ||||||||||||
Other assets | (208) | (205) | ||||||||||||
Accounts payable | 887 | (224) | ||||||||||||
Accrued and other liabilities | 528 | (578) | ||||||||||||
Cash provided by operating activities | 5,332 | 552 | ||||||||||||
Investing activities | ||||||||||||||
Expenditures for property and equipment | (3,952) | (4,323) | ||||||||||||
Proceeds from disposal of property and equipment | 24 | 4 | ||||||||||||
Other investments | 18 | 16 | ||||||||||||
Cash required for investing activities | (3,910) | (4,303) | ||||||||||||
Financing activities | ||||||||||||||
Change in commercial paper, net | — | 2,104 | ||||||||||||
Additions to long-term debt | — | 991 | ||||||||||||
Reductions of long-term debt | (114) | (139) | ||||||||||||
Dividends paid | (1,503) | (1,339) | ||||||||||||
Repurchase of stock | — | (2,646) | ||||||||||||
Shares withheld for taxes on share-based compensation | (124) | (179) | ||||||||||||
Stock option exercises | — | 2 | ||||||||||||
Cash required for financing activities | (1,741) | (1,206) | ||||||||||||
Net decrease in cash and cash equivalents | (319) | (4,957) | ||||||||||||
Cash and cash equivalents at beginning of period | 2,229 | 5,911 | ||||||||||||
Cash and cash equivalents at end of period | $ | 1,910 | $ | 954 |
Rate Analysis | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
(unaudited) | October 28, 2023 | October 29, 2022 | October 28, 2023 | October 29, 2022 | ||||||||||||||||||||||
Gross margin rate | 27.4 | % | 24.7 | % | 26.9 | % | 23.9 | % | ||||||||||||||||||
SG&A expense rate | 20.9 | 19.7 | 20.6 | 19.3 | ||||||||||||||||||||||
Depreciation and amortization expense rate (exclusive of depreciation included in cost of sales) | 2.4 | 2.3 | 2.4 | 2.3 | ||||||||||||||||||||||
Operating income margin rate | 5.2 | 3.9 | 5.1 | 3.5 |
Comparable Sales | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
(unaudited) | October 28, 2023 | October 29, 2022 | October 28, 2023 | October 29, 2022 | ||||||||||||||||||||||
Comparable sales change | (4.9) | % | 2.7 | % | (3.5) | % | 2.9 | % | ||||||||||||||||||
Drivers of change in comparable sales | ||||||||||||||||||||||||||
Number of transactions (traffic) | (4.1) | 1.4 | (2.7) | 2.6 | ||||||||||||||||||||||
Average transaction amount | (0.8) | 1.3 | (0.8) | 0.2 |
Comparable Sales by Channel | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
(unaudited) | October 28, 2023 | October 29, 2022 | October 28, 2023 | October 29, 2022 | |||||||||||||||||||
Stores originated comparable sales change | (4.6) | % | 3.2 | % | (2.8) | % | 2.6 | % | |||||||||||||||
Digitally originated comparable sales change | (6.0) | 0.3 | (6.7) | 4.1 |
Sales by Channel | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
(unaudited) | October 28, 2023 | October 29, 2022 | October 28, 2023 | October 29, 2022 | ||||||||||||||||||||||
Stores originated | 83.2 | % | 82.9 | % | 82.9 | % | 82.3 | % | ||||||||||||||||||
Digitally originated | 16.8 | 17.1 | 17.1 | 17.7 | ||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Sales by Fulfillment Channel | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
(unaudited) | October 28, 2023 | October 29, 2022 | October 28, 2023 | October 29, 2022 | ||||||||||||||||||||||
Stores | 97.7 | % | 96.8 | % | 97.5 | % | 96.7 | % | ||||||||||||||||||
Other | 2.3 | 3.2 | 2.5 | 3.3 | ||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
RedCard Penetration | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
(unaudited) | October 28, 2023 | October 29, 2022 | October 28, 2023 | October 29, 2022 | ||||||||||||||||||||||
Total RedCard Penetration | 18.3 | % | 19.6 | % | 18.6 | % | 20.0 | % |
Number of Stores and Retail Square Feet | Number of Stores | Retail Square Feet (a) | ||||||||||||||||||||||||||||||||||||
(unaudited) | October 28, 2023 | January 28, 2023 | October 29, 2022 | October 28, 2023 | January 28, 2023 | October 29, 2022 | ||||||||||||||||||||||||||||||||
170,000 or more sq. ft. | 273 | 274 | 274 | 48,824 | 48,985 | 48,985 | ||||||||||||||||||||||||||||||||
50,000 to 169,999 sq. ft. | 1,542 | 1,527 | 1,522 | 192,877 | 191,241 | 190,739 | ||||||||||||||||||||||||||||||||
49,999 or less sq. ft. | 141 | 147 | 145 | 4,207 | 4,358 | 4,305 | ||||||||||||||||||||||||||||||||
Total | 1,956 | 1,948 | 1,941 | 245,908 | 244,584 | 244,029 |
Reconciliation of Non-GAAP Adjusted EPS | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
October 28, 2023 | October 29, 2022 | |||||||||||||||||||||||||||||||||||||||||||
(millions, except per share data) (unaudited) | Pretax | Net of Tax | Per Share | Pretax | Net of Tax | Per Share | Change | |||||||||||||||||||||||||||||||||||||
GAAP and adjusted diluted earnings per share | $ | 2.10 | $ | 1.54 | 36.3 | % | ||||||||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Adjusted EPS | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||
October 28, 2023 | October 29, 2022 | |||||||||||||||||||||||||||||||||||||||||||
(millions, except per share data) (unaudited) | Pretax | Net of Tax | Per Share | Pretax | Net of Tax | Per Share | Change | |||||||||||||||||||||||||||||||||||||
GAAP diluted earnings per share | $ | 5.96 | $ | 4.09 | 45.6 | % | ||||||||||||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||||||||||||||||||
Other (a) | $ | — | $ | — | $ | — | $ | 20 | $ | 15 | $ | 0.03 | ||||||||||||||||||||||||||||||||
Adjusted diluted earnings per share | $ | 5.96 | $ | 4.12 | 44.4 | % | ||||||||||||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Adjusted EPS Guidance | Guidance | ||||
Q4 2023 | |||||
(unaudited) | Per Share | ||||
GAAP diluted earnings per share guidance | $1.90 - $2.60 | ||||
Estimated adjustments | |||||
Other (a) | $ | — | |||
Adjusted diluted earnings per share guidance | $1.90 - $2.60 |
EBIT and EBITDA | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||
(dollars in millions) (unaudited) | October 28, 2023 | October 29, 2022 | Change | October 28, 2023 | October 29, 2022 | Change | ||||||||||||||||||||||||||||||||
Net earnings | $ | 971 | $ | 712 | 36.3 | % | $ | 2,756 | $ | 1,904 | 44.7 | % | ||||||||||||||||||||||||||
+ Provision for income taxes | 264 | 197 | 34.2 | 755 | 471 | 60.6 | ||||||||||||||||||||||||||||||||
+ Net interest expense | 107 | 125 | (14.1) | 395 | 349 | 13.4 | ||||||||||||||||||||||||||||||||
EBIT | $ | 1,342 | $ | 1,034 | 29.8 | % | $ | 3,906 | $ | 2,724 | 43.5 | % | ||||||||||||||||||||||||||
+ Total depreciation and amortization (a) | 722 | 674 | 7.1 | 2,072 | 2,004 | 3.4 | ||||||||||||||||||||||||||||||||
EBITDA | $ | 2,064 | $ | 1,708 | 20.9 | % | $ | 5,978 | $ | 4,728 | 26.5 | % |
After-Tax Return on Invested Capital | ||||||||||||||||||||||||||
(dollars in millions) (unaudited) | ||||||||||||||||||||||||||
Trailing Twelve Months | ||||||||||||||||||||||||||
Numerator | October 28, 2023 | October 29, 2022 | ||||||||||||||||||||||||
Operating income | $ | 5,001 | $ | 4,784 | ||||||||||||||||||||||
+ Net other income | 79 | 61 | ||||||||||||||||||||||||
EBIT | 5,080 | 4,845 | ||||||||||||||||||||||||
+ Operating lease interest (a) | 106 | 89 | ||||||||||||||||||||||||
- Income taxes (b) | 1,050 | 1,059 | ||||||||||||||||||||||||
Net operating profit after taxes | $ | 4,136 | $ | 3,875 |
Denominator | October 28, 2023 | October 29, 2022 | October 30, 2021 | |||||||||||||||||
Current portion of long-term debt and other borrowings | $ | 1,112 | $ | 2,207 | $ | 1,176 | ||||||||||||||
+ Noncurrent portion of long-term debt | 14,883 | 14,237 | 11,586 | |||||||||||||||||
+ Shareholders' investment | 12,514 | 11,019 | 13,803 | |||||||||||||||||
+ Operating lease liabilities (c) | 3,351 | 2,879 | 2,737 | |||||||||||||||||
- Cash and cash equivalents | 1,910 | 954 | 5,753 | |||||||||||||||||
Invested capital | $ | 29,950 | $ | 29,388 | $ | 23,549 | ||||||||||||||
Average invested capital (d) | $ | 29,670 | $ | 26,469 |
After-tax return on invested capital | 13.9 | % | 14.6 | % |
Cover Page |
Nov. 15, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Nov. 15, 2023 |
Entity Registrant Name | Target Corporation |
Entity Incorporation, State or Country Code | MN |
Entity File Number | 1-6049 |
Entity Tax Identification Number | 41-0215170 |
Entity Address, Address Line One | 1000 Nicollet Mall, |
Entity Address, City or Town | Minneapolis, |
Entity Address, State or Province | MN |
Entity Address, Postal Zip Code | 55403 |
City Area Code | (612) |
Local Phone Number | 304-6073 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common stock, par value $0.0833 per share |
Trading Symbol | TGT |
Security Exchange Name | NYSE |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000027419 |
Amendment Flag | false |
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