(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: August 21, 2024 | By: | /s/ Michael J. Fiddelke | ||||||
Name: Michael J. Fiddelke | ||||||||
Title: Executive Vice President and Chief Operating Officer 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, when applicable. See the tables of this release for additional information. | ||
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||||||||||
(millions, except per share data) (unaudited) | August 3, 2024 | July 29, 2023 | Change | August 3, 2024 | July 29, 2023 | Change | ||||||||||||||||||||||||||||||||
Sales | $ | 25,021 | $ | 24,384 | 2.6 | % | $ | 49,164 | $ | 49,332 | (0.3) | % | ||||||||||||||||||||||||||
Other revenue | 431 | 389 | 10.8 | 819 | 763 | 7.4 | ||||||||||||||||||||||||||||||||
Total revenue | 25,452 | 24,773 | 2.7 | 49,983 | 50,095 | (0.2) | ||||||||||||||||||||||||||||||||
Cost of sales | 17,799 | 17,798 | 0.0 | 35,248 | 36,184 | (2.6) | ||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 5,392 | 5,184 | 4.0 | 10,560 | 10,209 | 3.4 | ||||||||||||||||||||||||||||||||
Depreciation and amortization (exclusive of depreciation included in cost of sales) | 626 | 594 | 5.3 | 1,244 | 1,177 | 5.7 | ||||||||||||||||||||||||||||||||
Operating income | 1,635 | 1,197 | 36.6 | 2,931 | 2,525 | 16.1 | ||||||||||||||||||||||||||||||||
Net interest expense | 110 | 141 | (22.4) | 216 | 288 | (25.1) | ||||||||||||||||||||||||||||||||
Net other income | (20) | (16) | 20.3 | (49) | (39) | 24.2 | ||||||||||||||||||||||||||||||||
Earnings before income taxes | 1,545 | 1,072 | 44.1 | 2,764 | 2,276 | 21.4 | ||||||||||||||||||||||||||||||||
Provision for income taxes | 353 | 237 | 48.7 | 630 | 491 | 28.2 | ||||||||||||||||||||||||||||||||
Net earnings | $ | 1,192 | $ | 835 | 42.7 | % | $ | 2,134 | $ | 1,785 | 19.6 | % | ||||||||||||||||||||||||||
Basic earnings per share | $ | 2.58 | $ | 1.81 | 42.5 | % | $ | 4.62 | $ | 3.87 | 19.3 | % | ||||||||||||||||||||||||||
Diluted earnings per share | $ | 2.57 | $ | 1.80 | 42.4 | % | $ | 4.60 | $ | 3.86 | 19.3 | % | ||||||||||||||||||||||||||
Weighted average common shares outstanding | ||||||||||||||||||||||||||||||||||||||
Basic | 462.5 | 461.6 | 0.2 | % | 462.4 | 461.3 | 0.2 | % | ||||||||||||||||||||||||||||||
Diluted | 463.5 | 462.5 | 0.2 | % | 463.7 | 462.7 | 0.2 | % | ||||||||||||||||||||||||||||||
Antidilutive shares | 2.3 | 2.9 | 1.8 | 2.4 | ||||||||||||||||||||||||||||||||||
Dividends declared per share | $ | 1.12 | $ | 1.10 | 1.8 | % | $ | 2.22 | $ | 2.18 | 1.8 | % |
(millions, except footnotes) (unaudited) | August 3, 2024 | February 3, 2024 | July 29, 2023 | |||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | 3,497 | $ | 3,805 | $ | 1,617 | ||||||||||||||
Inventory | 12,604 | 11,886 | 12,684 | |||||||||||||||||
Other current assets | 1,817 | 1,807 | 1,797 | |||||||||||||||||
Total current assets | 17,918 | 17,498 | 16,098 | |||||||||||||||||
Property and equipment | ||||||||||||||||||||
Land | 6,645 | 6,547 | 6,504 | |||||||||||||||||
Buildings and improvements | 38,324 | 37,066 | 35,889 | |||||||||||||||||
Fixtures and equipment | 8,690 | 8,765 | 7,936 | |||||||||||||||||
Computer hardware and software | 3,437 | 3,428 | 3,178 | |||||||||||||||||
Construction-in-progress | 830 | 1,703 | 2,641 | |||||||||||||||||
Accumulated depreciation | (24,851) | (24,413) | (23,201) | |||||||||||||||||
Property and equipment, net | 33,075 | 33,096 | 32,947 | |||||||||||||||||
Operating lease assets | 3,545 | 3,362 | 2,840 | |||||||||||||||||
Other noncurrent assets | 1,457 | 1,400 | 1,321 | |||||||||||||||||
Total assets | $ | 55,995 | $ | 55,356 | $ | 53,206 | ||||||||||||||
Liabilities and shareholders’ investment | ||||||||||||||||||||
Accounts payable | $ | 12,595 | $ | 12,098 | $ | 12,278 | ||||||||||||||
Accrued and other current liabilities | 5,749 | 6,090 | 5,948 | |||||||||||||||||
Current portion of long-term debt and other borrowings | 1,640 | 1,116 | 1,106 | |||||||||||||||||
Total current liabilities | 19,984 | 19,304 | 19,332 | |||||||||||||||||
Long-term debt and other borrowings | 13,654 | 14,922 | 14,926 | |||||||||||||||||
Noncurrent operating lease liabilities | 3,444 | 3,279 | 2,798 | |||||||||||||||||
Deferred income taxes | 2,495 | 2,480 | 2,334 | |||||||||||||||||
Other noncurrent liabilities | 1,989 | 1,939 | 1,826 | |||||||||||||||||
Total noncurrent liabilities | 21,582 | 22,620 | 21,884 | |||||||||||||||||
Shareholders’ investment | ||||||||||||||||||||
Common stock | 38 | 38 | 38 | |||||||||||||||||
Additional paid-in capital | 6,831 | 6,761 | 6,610 | |||||||||||||||||
Retained earnings | 8,030 | 7,093 | 5,767 | |||||||||||||||||
Accumulated other comprehensive loss | (470) | (460) | (425) | |||||||||||||||||
Total shareholders’ investment | 14,429 | 13,432 | 11,990 | |||||||||||||||||
Total liabilities and shareholders’ investment | $ | 55,995 | $ | 55,356 | $ | 53,206 |
Six Months Ended | ||||||||||||||
(millions) (unaudited) | August 3, 2024 | July 29, 2023 | ||||||||||||
Operating activities | ||||||||||||||
Net earnings | $ | 2,134 | $ | 1,785 | ||||||||||
Adjustments to reconcile net earnings to cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | 1,461 | 1,350 | ||||||||||||
Share-based compensation expense | 149 | 107 | ||||||||||||
Deferred income taxes | 16 | 141 | ||||||||||||
Noncash losses / (gains) and other, net | 22 | 11 | ||||||||||||
Changes in operating accounts: | ||||||||||||||
Inventory | (718) | 815 | ||||||||||||
Other assets | (53) | 62 | ||||||||||||
Accounts payable | 522 | (1,137) | ||||||||||||
Accrued and other liabilities | (194) | 264 | ||||||||||||
Cash provided by operating activities | 3,339 | 3,398 | ||||||||||||
Investing activities | ||||||||||||||
Expenditures for property and equipment | (1,313) | (2,825) | ||||||||||||
Proceeds from disposal of property and equipment | 2 | 6 | ||||||||||||
Other investments | 6 | (2) | ||||||||||||
Cash required for investing activities | (1,305) | (2,821) | ||||||||||||
Financing activities | ||||||||||||||
Reductions of long-term debt | (1,076) | (72) | ||||||||||||
Dividends paid | (1,017) | (996) | ||||||||||||
Repurchase of stock | (155) | — | ||||||||||||
Shares withheld for taxes on share-based compensation | (94) | (121) | ||||||||||||
Cash required for financing activities | (2,342) | (1,189) | ||||||||||||
Net decrease in cash and cash equivalents | (308) | (612) | ||||||||||||
Cash and cash equivalents at beginning of period | 3,805 | 2,229 | ||||||||||||
Cash and cash equivalents at end of period | $ | 3,497 | $ | 1,617 |
Rate Analysis | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
(unaudited) | August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | ||||||||||||||||||||||
Gross margin rate | 28.9 | % | 27.0 | % | 28.3 | % | 26.7 | % | ||||||||||||||||||
SG&A expense rate | 21.2 | 20.9 | 21.1 | 20.4 | ||||||||||||||||||||||
Depreciation and amortization expense rate (exclusive of depreciation included in cost of sales) | 2.5 | 2.4 | 2.5 | 2.3 | ||||||||||||||||||||||
Operating income margin rate | 6.4 | 4.8 | 5.9 | 5.0 |
Comparable Sales | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
(unaudited) | August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | ||||||||||||||||||||||
Comparable sales change | 2.0 | % | (5.4) | % | (0.9) | % | (2.8) | % | ||||||||||||||||||
Drivers of change in comparable sales | ||||||||||||||||||||||||||
Number of transactions (traffic) | 3.0 | (4.8) | 0.6 | (2.0) | ||||||||||||||||||||||
Average transaction amount | (0.9) | (0.7) | (1.4) | (0.8) |
Comparable Sales by Channel | Three Months Ended | Six Months Ended | |||||||||||||||||||||
(unaudited) | August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | |||||||||||||||||||
Stores originated comparable sales change | 0.7 | % | (4.3) | % | (2.1) | % | (1.8) | % | |||||||||||||||
Digitally originated comparable sales change | 8.7 | (10.5) | 5.0 | (7.0) |
Sales by Channel | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
(unaudited) | August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | ||||||||||||||||||||||
Stores originated | 82.1 | % | 83.1 | % | 81.9 | % | 82.8 | % | ||||||||||||||||||
Digitally originated | 17.9 | 16.9 | 18.1 | 17.2 | ||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Sales by Fulfillment Channel | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
(unaudited) | August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | ||||||||||||||||||||||
Stores | 97.9 | % | 97.6 | % | 97.8 | % | 97.4 | % | ||||||||||||||||||
Other | 2.1 | 2.4 | 2.2 | 2.6 | ||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Target Circle Card Penetration | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||
(unaudited) | August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | ||||||||||||||||||||||
Total Target Circle Card Penetration | 17.7 | % | 18.6 | % | 17.9 | % | 18.8 | % |
Number of Stores and Retail Square Feet | Number of Stores | Retail Square Feet (a) | ||||||||||||||||||||||||||||||||||||
(unaudited) | August 3, 2024 | February 3, 2024 | July 29, 2023 | August 3, 2024 | February 3, 2024 | July 29, 2023 | ||||||||||||||||||||||||||||||||
170,000 or more sq. ft. | 273 | 273 | 274 | 48,824 | 48,824 | 48,995 | ||||||||||||||||||||||||||||||||
50,000 to 169,999 sq. ft. | 1,549 | 1,542 | 1,534 | 193,705 | 192,908 | 191,947 | ||||||||||||||||||||||||||||||||
49,999 or less sq. ft. | 144 | 141 | 147 | 4,334 | 4,207 | 4,404 | ||||||||||||||||||||||||||||||||
Total | 1,966 | 1,956 | 1,955 | 246,863 | 245,939 | 245,346 |
Reconciliation of Non-GAAP Adjusted EPS | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||
August 3, 2024 | July 29, 2023 | Change | August 3, 2024 | July 29, 2023 | Change | |||||||||||||||||||||||||||||||||
GAAP and adjusted diluted earnings per share | $ | 2.57 | $ | 1.80 | 42.4 | % | $ | 4.60 | $ | 3.86 | 19.3 | % | ||||||||||||||||||||||||||
Reconciliation of Non-GAAP Adjusted EPS Guidance | Guidance | ||||||||||
(per share) (unaudited) | Q3 2024 | Full Year 2024 | |||||||||
GAAP diluted earnings per share guidance | $2.10 - $2.40 | $9.00 - $9.70 | |||||||||
Estimated adjustments | |||||||||||
Other (a) | $ | — | $ | — | |||||||
Adjusted diluted earnings per share guidance | $2.10 - $2.40 | $9.00 - $9.70 |
EBIT and EBITDA | Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||||||
(dollars in millions) (unaudited) | August 3, 2024 | July 29, 2023 | Change | August 3, 2024 | July 29, 2023 | Change | ||||||||||||||||||||||||||||||||
Net earnings | $ | 1,192 | $ | 835 | 42.7 | % | $ | 2,134 | $ | 1,785 | 19.6 | % | ||||||||||||||||||||||||||
+ Provision for income taxes | 353 | 237 | 48.7 | 630 | 491 | 28.2 | ||||||||||||||||||||||||||||||||
+ Net interest expense | 110 | 141 | (22.4) | 216 | 288 | (25.1) | ||||||||||||||||||||||||||||||||
EBIT | $ | 1,655 | $ | 1,213 | 36.3 | % | $ | 2,980 | $ | 2,564 | 16.2 | % | ||||||||||||||||||||||||||
+ Total depreciation and amortization (a) | 743 | 683 | 8.8 | 1,461 | 1,350 | 8.2 | ||||||||||||||||||||||||||||||||
EBITDA | $ | 2,398 | $ | 1,896 | 26.4 | % | $ | 4,441 | $ | 3,914 | 13.5 | % |
After-Tax Return on Invested Capital | ||||||||||||||||||||||||||
(dollars in millions) (unaudited) | ||||||||||||||||||||||||||
Trailing Twelve Months | ||||||||||||||||||||||||||
Numerator | August 3, 2024 (a) | July 29, 2023 | ||||||||||||||||||||||||
Operating income | $ | 6,113 | $ | 4,706 | ||||||||||||||||||||||
+ Net other income | 102 | 65 | ||||||||||||||||||||||||
EBIT | 6,215 | 4,771 | ||||||||||||||||||||||||
+ Operating lease interest (b) | 146 | 102 | ||||||||||||||||||||||||
- Income taxes (c) | 1,427 | 986 | ||||||||||||||||||||||||
Net operating profit after taxes | $ | 4,934 | $ | 3,887 |
Denominator | August 3, 2024 | July 29, 2023 | July 30, 2022 | |||||||||||||||||
Current portion of long-term debt and other borrowings | $ | 1,640 | $ | 1,106 | $ | 1,649 | ||||||||||||||
+ Noncurrent portion of long-term debt | 13,654 | 14,926 | 13,453 | |||||||||||||||||
+ Shareholders' investment | 14,429 | 11,990 | 10,592 | |||||||||||||||||
+ Operating lease liabilities (d) | 3,786 | 3,104 | 2,823 | |||||||||||||||||
- Cash and cash equivalents | 3,497 | 1,617 | 1,117 | |||||||||||||||||
Invested capital | $ | 30,012 | $ | 29,509 | $ | 27,400 | ||||||||||||||
Average invested capital (e) | $ | 29,760 | $ | 28,454 |
After-tax return on invested capital | 16.6 | % | 13.7 | % |
Cover Page |
Aug. 21, 2024 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Aug. 21, 2024 |
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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