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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 20, 2024

Target Corporation
(Exact name of registrant as specified in its charter)
Minnesota 1-6049 41-0215170
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)
1000 Nicollet Mall,Minneapolis,Minnesota55403
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (612)304-6073

Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.0833 per shareTGTNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o 



Item 2.02             Results of Operations and Financial Condition.
 
On November 20, 2024, Target Corporation issued a News Release containing its financial results for the three months ended November 2, 2024. The News Release is attached hereto as Exhibit 99.

Item 9.01             Financial Statements and Exhibits.
 
(d)                                 Exhibits.
99
104Cover Page Interactive Data File (formatted as inline XBRL).



2

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 hereunto duly authorized.
 
 TARGET CORPORATION
  
Date: November 20, 2024By:/s/ Jim Lee
 Name: Jim Lee
 Title: Executive Vice President and Chief Financial Officer

3

Exhibit 99
releasebullseyeq419.gif

FOR IMMEDIATE RELEASE
Contacts:John Hulbert, Investors, (612) 761-6627
 
Jennifer Kron, Media, (612) 696-3400

Target Corporation Reports Third Quarter Earnings
•Third quarter comparable sales increased 0.3 percent, driven by strong traffic and digital performance.
◦Guest traffic grew 2.4 percent over the prior year.
◦Digital comparable sales grew 10.8 percent reflecting nearly 20 percent growth in same-day delivery powered by Target Circle 360TM and double digit growth in Drive Up.
◦Beauty comparable sales grew more than 6 percent. Food & Beverage and Essentials categories grew low-single digits compared to the prior year.
•Third quarter gross margin rate was down 0.2 percentage points to the prior year. Year-to-date, gross margin rate has expanded by a full percentage point compared to last year.
•Third quarter GAAP and Adjusted EPS of $1.85 was down 11.9 percent compared with last year.

For additional media materials, please visit:
https://corporate.target.com/news-features/article/2024/11/q3-2024-earnings

MINNEAPOLIS (November 20, 2024) – Target Corporation (NYSE: TGT) today announced its third quarter 2024 financial results, reflecting comparable sales growth driven entirely by traffic and strength in the digital channel.
The Company reported third quarter GAAP and Adjusted earnings per share1 (EPS) of $1.85, compared with $2.10 in 2023. The attached tables provide a reconciliation of non-GAAP to GAAP measures. All earnings per share figures refer to diluted EPS.

– more –
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.
Target Corporation Reports Third Quarter Earnings — Page 2 of 11
“I’m proud of our team’s efforts to navigate through a volatile operating environment during the third quarter. We saw several strengths across the business, including a 2.4 percent increase in traffic, nearly 11 percent growth in the digital channel, and continued growth in beauty and frequency categories. At the same time, we encountered some unique challenges and cost pressures that impacted our bottom-line performance,” said Brian Cornell, chair and chief executive officer of Target Corporation. “Looking ahead, our team is energized and ready to deliver the unique combination of newness and value that holiday shoppers can only find at Target, and we remain confident in the underlying strength and fundamentals of our business, and our ability to deliver on our longer-term financial goals.”

Guidance
For the fourth quarter, the Company expects approximately flat comparable sales and GAAP and Adjusted EPS of $1.85 to $2.45, translating to a full year expected GAAP and Adjusted EPS range of $8.30 to $8.90.

Operating Results
Comparable sales increased 0.3 percent in the third quarter, reflecting a comparable store sales decline of 1.9 percent and a comparable digital sales increase of 10.8 percent. Total revenue of $25.7 billion in the third quarter was 1.1 percent higher than last year, reflecting a total sales increase of 0.9 percent and an 11.5 percent increase in other revenue. Third quarter operating income of $1.2 billion was 11.2 percent lower than last year.
– more –

Target Corporation Reports Third Quarter Earnings — Page 3 of 11

Third quarter operating income margin rate was 4.6 percent in 2024, compared with 5.2 percent in 2023. Third quarter gross margin rate was 27.2 percent, compared with 27.4 percent in 2023, reflecting higher digital fulfillment and supply chain costs due to the cost of managing higher inventory levels, increased digital sales volume, and new supply chain facilities coming online, partially offset by lower book to physical inventory adjustments and the net impact of merchandising activities as compared to the prior year. Third quarter SG&A expense rate was 21.4 percent in 2024, compared with 20.9 percent in 2023, reflecting the combined impact of higher costs, including higher team member pay and benefits and higher general liability expenses, partially offset by disciplined cost management.

Interest Expense and Taxes
The Company’s third quarter 2024 net interest expense was $105 million, compared with $107 million last year.
Third quarter 2024 effective income tax rate was 21.7 percent, compared with the prior year rate of 21.3 percent, reflecting lower discrete benefits in the current year.

Capital Deployment and Return on Invested Capital
The Company paid dividends of $516 million in the third quarter, compared with $507 million last year, reflecting a 1.8 percent increase in the dividend per share.
The Company repurchased $354 million of its shares in the third quarter, retiring 2.4 million shares of common stock at an average price of $147.43. As of the end of the quarter, the Company had approximately $9.2 billion of remaining capacity under the repurchase program approved by Target’s Board of Directors in August 2021.
– more –

Target Corporation Reports Third Quarter Earnings — Page 4 of 11
For the trailing twelve months through third quarter 2024, after-tax return on invested capital (ROIC) was 15.9 percent, compared with 13.9 percent for the trailing twelve months through third quarter 2023. The increase in ROIC reflects higher operating income, partially offset by higher average invested capital. The tables in this release provide additional information about the Company’s ROIC calculation.

Webcast Details
Target will webcast its third quarter earnings conference call at 7:00 a.m. CT today. Investors and the media are invited to listen to the meeting at Corporate.Target.com/Investors (click on "Q3 2024 Target Corporation Earnings Conference Call" under "Events & Presentations"). A replay of the webcast will be provided when available. The replay number is 1-800-513-1169.

Miscellaneous
Statements in this release regarding the Company’s future financial performance, including its fiscal 2024 fourth quarter and full-year guidance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause the Company’s results to differ materially. The most important risks and uncertainties are described in Item 1A of the Company’s Form 10-K for the fiscal year ended February 3, 2024. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statement.

About Target
Minneapolis-based Target Corporation (NYSE: TGT) serves guests at nearly 2,000 stores and at Target.com, with the purpose of helping all families discover the joy of everyday life. Since 1946, Target has given 5% of its profit to communities, which today equals millions of dollars a week. Additional company information can be found by visiting the corporate website (corporate.target.com) and press center.

# # #

Target Corporation Reports Third Quarter Earnings — Page 5 of 11
TARGET CORPORATION
 
Consolidated Statements of Operations
 Three Months Ended Nine Months Ended 
(millions, except per share data) (unaudited)November 2, 2024October 28, 2023ChangeNovember 2, 2024October 28, 2023Change
Sales $25,228 $25,004 0.9 %$74,392 $74,336 0.1 %
Other revenue440 394 11.5 1,259 1,157 8.8 
Total revenue25,668 25,398 1.1 75,651 75,493 0.2 
Cost of sales18,375 18,149 1.2 53,623 54,333 (1.3)
Selling, general and administrative expenses
5,486 5,316 3.2 16,046 15,525 3.4 
Depreciation and amortization (exclusive of depreciation included in cost of sales)
639 616 3.6 1,883 1,793 5.0 
Operating income
1,168 1,317 (11.2)4,099 3,842 6.7 
Net interest expense105 107 (1.5)321 395 (18.7)
Net other income(28)(25)11.0 (77)(64)19.0 
Earnings before income taxes
1,091 1,235 (11.6)3,855 3,511 9.8 
Provision for income taxes237 264 (9.9)867 755 14.9 
Net earnings $854 $971 (12.1)%$2,988 $2,756 8.4 %
Basic earnings per share
$1.86 $2.10 (11.8)%$6.47 $5.97 8.3 %
Diluted earnings per share
$1.85 $2.10 (11.9)%$6.45 $5.96 8.3 %
Weighted average common shares outstanding
  
Basic460.1 461.6 (0.3)%461.6 461.4 0.1 %
Diluted461.5 462.6 (0.2)%462.9 462.7 0.1 %
Antidilutive shares0.5 3.0 0.5 2.6 
Dividends declared per share$1.12 $1.10 1.8 %$3.34 $3.28 1.8 %


Target Corporation Reports Third Quarter Earnings — Page 6 of 11
TARGET CORPORATION
 
Consolidated Statements of Financial Position
(millions, except footnotes) (unaudited)November 2, 2024February 3, 2024October 28, 2023
Assets
Cash and cash equivalents$3,433 $3,805 $1,910 
Inventory15,165 11,886 14,731 
Other current assets1,956 1,807 1,958 
Total current assets20,554 17,498 18,599 
Property and equipment
Land6,666 6,547 6,520 
Buildings and improvements38,666 37,066 36,627 
Fixtures and equipment8,840 8,765 8,490 
Computer hardware and software3,549 3,428 3,312 
Construction-in-progress758 1,703 2,000 
Accumulated depreciation(25,548)(24,413)(23,781)
Property and equipment, net32,931 33,096 33,168 
Operating lease assets3,513 3,362 3,086 
Other noncurrent assets1,533 1,400 1,376 
Total assets$58,531 $55,356 $56,229 
Liabilities and shareholders’ investment
Accounts payable$14,419 $12,098 $14,291 
Accrued and other current liabilities5,738 6,090 6,099 
Current portion of long-term debt and other borrowings1,635 1,116 1,112 
Total current liabilities21,792 19,304 21,502 
Long-term debt and other borrowings14,346 14,922 14,883 
Noncurrent operating lease liabilities3,418 3,279 3,031 
Deferred income taxes2,419 2,480 2,447 
Other noncurrent liabilities2,067 1,939 1,852 
Total noncurrent liabilities22,250 22,620 22,213 
Shareholders’ investment
Common stock38 38 38 
Additional paid-in capital6,916 6,761 6,681 
Retained earnings8,009 7,093 6,225 
Accumulated other comprehensive loss(474)(460)(430)
Total shareholders’ investment14,489 13,432 12,514 
Total liabilities and shareholders’ investment$58,531 $55,356 $56,229 
Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 459,244,995, 461,675,441, and 461,651,176 shares issued and outstanding as of November 2, 2024, February 3, 2024, and October 28, 2023, respectively.
 
Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented.

Target Corporation Reports Third Quarter Earnings — Page 7 of 11
TARGET CORPORATION
 
Consolidated Statements of Cash Flows
 Nine Months Ended
(millions) (unaudited)November 2, 2024October 28, 2023
Operating activities  
Net earnings $2,988 $2,756 
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation and amortization2,215 2,072 
Share-based compensation expense229 176 
Deferred income taxes(58)252 
Noncash (gains) / losses and other, net (1)101 
Changes in operating accounts:  
Inventory(3,279)(1,232)
Other assets(265)(208)
Accounts payable2,362 887 
Accrued and other liabilities(113)528 
Cash provided by operating activities4,078 5,332 
Investing activities  
Expenditures for property and equipment(1,968)(3,952)
Proceeds from disposal of property and equipment2 24 
Other investments24 18 
Cash required for investing activities(1,942)(3,910)
Financing activities  
Additions to long-term debt741 — 
Reductions of long-term debt(1,112)(114)
Dividends paid(1,533)(1,503)
Repurchase of stock(506)— 
Shares withheld for taxes on share-based compensation(98)(124)
Cash required for financing activities(2,508)(1,741)
Net decrease in cash and cash equivalents(372)(319)
Cash and cash equivalents at beginning of period3,805 2,229 
Cash and cash equivalents at end of period$3,433 $1,910 


Target Corporation Reports Third Quarter Earnings — Page 8 of 11
TARGET CORPORATION
 
Operating Results

Rate AnalysisThree Months EndedNine Months Ended
(unaudited)November 2, 2024October 28, 2023November 2, 2024October 28, 2023
Gross margin rate27.2 %27.4 %27.9 %26.9 %
SG&A expense rate21.4 20.9 21.2 20.6 
Depreciation and amortization expense rate (exclusive of depreciation included in cost of sales)
2.5 2.4 2.5 2.4 
Operating income margin rate4.6 5.2 5.4 5.1 
Note: Gross margin rate is calculated as gross margin (sales less cost of sales) divided by sales. All other rates are calculated by dividing the applicable amount by total revenue. Other revenue includes $148 million and $433 million of profit-sharing income under our credit card program agreement for the three and nine months ended November 2, 2024, respectively, and $165 million and $508 million for the three and nine months ended October 28, 2023, respectively.

Comparable SalesThree Months EndedNine Months Ended
(unaudited)November 2, 2024October 28, 2023November 2, 2024October 28, 2023
Comparable sales change0.3 %(4.9)%(0.5)%(3.5)%
Drivers of change in comparable sales
Number of transactions (traffic)2.4 (4.1)1.1 (2.7)
Average transaction amount(2.0)(0.8)(1.6)(0.8)

Comparable Sales by ChannelThree Months EndedNine Months Ended
(unaudited)November 2, 2024October 28, 2023November 2, 2024October 28, 2023
Stores originated comparable sales change(1.9)%(4.6)%(2.0)%(2.8)%
Digitally originated comparable sales change10.8 (6.0)6.9 (6.7)
 
Sales by ChannelThree Months EndedNine Months Ended
(unaudited)November 2, 2024October 28, 2023November 2, 2024October 28, 2023
Stores originated81.5 %83.2 %81.8 %82.9 %
Digitally originated18.5 16.8 18.2 17.1 
Total100 %100 %100 %100 %

Sales by Fulfillment ChannelThree Months EndedNine Months Ended
(unaudited)November 2, 2024October 28, 2023November 2, 2024October 28, 2023
Stores 97.7 %97.7 %97.8 %97.5 %
Other2.3 2.3 2.2 2.5 
Total100 %100 %100 %100 %
Note: Sales fulfilled by stores include in-store purchases and digitally originated sales fulfilled by shipping merchandise from stores to guests, Order Pickup, Drive Up, and Shipt.

Target Circle Card PenetrationThree Months EndedNine Months Ended
(unaudited)November 2, 2024October 28, 2023November 2, 2024October 28, 2023
Total Target Circle Card Penetration17.7 %18.3 %17.8 %18.6 %

Target Corporation Reports Third Quarter Earnings — Page 9 of 11
 
Number of Stores and Retail Square FeetNumber of Stores
Retail Square Feet (a)
(unaudited)November 2,
2024		February 3,
2024		October 28,
2023		November 2,
2024		February 3,
2024		October 28,
2023
170,000 or more sq. ft.273 273 273 48,824 48,824 48,824 
50,000 to 169,999 sq. ft.1,559 1,542 1,542 195,050 192,908 192,877 
49,999 or less sq. ft.146 141 141 4,404 4,207 4,207 
Total1,978 1,956 1,956 248,278 245,939 245,908 
(a)In thousands; reflects total square feet less office, supply chain facilities, and vacant space.


Target Corporation Reports Third Quarter Earnings — Page 10 of 11
TARGET CORPORATION
 
Reconciliation of Non-GAAP Financial Measures
 
To provide additional transparency, we disclose non-GAAP adjusted diluted earnings per share (Adjusted EPS). When applicable, this metric excludes certain discretely managed items. However, there are no adjustments in any period presented. We believe this information is useful in providing period-to-period comparisons of the results of our operations. This measure is not in accordance with, or an alternative to, U.S. GAAP. The most comparable GAAP measure is diluted earnings per share. Adjusted EPS should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP. Other companies may calculate Adjusted EPS differently, limiting the usefulness of the measure for comparisons with other companies.
 
Reconciliation of Non-GAAP
Adjusted EPS		Three Months EndedNine Months Ended
November 2, 2024October 28, 2023ChangeNovember 2, 2024October 28, 2023Change
GAAP and adjusted diluted earnings per share
$1.85 $2.10 (11.9)%$6.45 $5.96 8.3 %

Reconciliation of Non-GAAP
Adjusted EPS Guidance		Guidance
(per share) (unaudited)
Q4 2024Full Year 2024
GAAP diluted earnings per share guidance
$1.85 - $2.45$8.30 - $8.90
Estimated adjustments
Other (a)
$— $— 
Adjusted diluted earnings per share guidance
$1.85 - $2.45$8.30 - $8.90
(a)Fourth quarter and full-year 2024 GAAP EPS may include the impact of certain discrete items, which will be excluded in calculating Adjusted EPS. The guidance does not currently reflect any such discrete items. In the past, these items have included losses on the early retirement of debt and certain other items that are discretely managed.

Earnings before interest expense and income taxes (EBIT) and earnings before interest expense, income taxes, depreciation and amortization (EBITDA) are non-GAAP financial measures. We believe these measures provide meaningful information about our operational efficiency compared with our competitors by excluding the impact of differences in tax jurisdictions and structures, debt levels, and, for EBITDA, capital investment. These measures are not in accordance with, or an alternative to, GAAP. The most comparable GAAP measure is net earnings. EBIT and EBITDA should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP. Other companies may calculate EBIT and EBITDA differently, limiting the usefulness of the measures for comparisons with other companies.

EBIT and EBITDAThree Months Ended Nine Months Ended 
(dollars in millions) (unaudited)November 2, 2024October 28, 2023ChangeNovember 2, 2024October 28, 2023Change
Net earnings $854 $971 (12.1)%$2,988 $2,756 8.4 %
 + Provision for income taxes237 264 (9.9)867 755 14.9 
 + Net interest expense105 107 (1.5)321 395 (18.7)
EBIT
$1,196 $1,342 (10.8)%$4,176 $3,906 6.9 %
 + Total depreciation and amortization (a)
754 722 4.2 2,215 2,072 6.8 
EBITDA
$1,950 $2,064 (5.5)%$6,391 $5,978 6.9 %
(a)Represents total depreciation and amortization, including amounts classified within Depreciation and Amortization and within Cost of Sales.

Target Corporation Reports Third Quarter Earnings — Page 11 of 11
We have also disclosed after-tax ROIC, which is a ratio based on GAAP information, with the exception of the add-back of operating lease interest to operating income. We believe this metric is useful in assessing the effectiveness of our capital allocation over time. Other companies may calculate ROIC differently, limiting the usefulness of the measure for comparisons with other companies.

After-Tax Return on Invested Capital
(dollars in millions) (unaudited)
Trailing Twelve Months
Numerator
November 2, 2024 (a)
October 28, 2023
Operating income
$5,964 $5,001 
 + Net other income
105 79 
EBIT
6,069 5,080 
 + Operating lease interest (b)
157 106 
  - Income taxes (c)
1,403 1,050 
Net operating profit after taxes$4,823 $4,136 

Denominator
November 2, 2024October 28, 2023October 29, 2022
Current portion of long-term debt and other borrowings$1,635 $1,112 $2,207 
 + Noncurrent portion of long-term debt14,346 14,883 14,237 
 + Shareholders' investment14,489 12,514 11,019 
 + Operating lease liabilities (d)
3,765 3,351 2,879 
  - Cash and cash equivalents
3,433 1,910 954 
Invested capital$30,802 $29,950 $29,388 
Average invested capital (e)
$30,376 $29,670 
After-tax return on invested capital
15.9 %13.9 %
(a)The trailing twelve months ended November 2, 2024, consisted of 53 weeks compared with 52 weeks in the prior-year period.
(b)Represents the add-back to operating income driven by the hypothetical interest expense we would incur if the property under our operating leases were owned or accounted for as finance leases. Calculated using the discount rate for each lease and recorded as a component of rent expense within Operating Income. Operating lease interest is added back to Operating Income in the ROIC calculation to control for differences in capital structure between us and our competitors.
(c)Calculated using the effective tax rates, which were 22.5 percent and 20.3 percent for the trailing twelve months ended November 2, 2024, and October 28, 2023, respectively. For the twelve months ended November 2, 2024, and October 28, 2023, includes tax effect of $1.4 billion and $1.0 billion, respectively, related to EBIT, and $35 million and $22 million, respectively, related to operating lease interest.
(d)Total short-term and long-term operating lease liabilities included within Accrued and Other Current Liabilities and Noncurrent Operating Lease Liabilities, respectively.
(e)Average based on the invested capital at the end of the current period and the invested capital at the end of the comparable prior period.

v3.24.3
Cover Page
Nov. 20, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 20, 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
Target (NYSE:TGT)
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