Target’s QQ3 2024 results reflect a challenging operating environment for a consumer discretionary retailer, with a pronounced year‑over‑year revenue decline and margin pressure. Reported revenue reached 25.668 billion USD, down ~19.6% from the prior year, while gross profit totaled 6.654 billion USD and the gross margin compressed to roughly 25.9%. Operating income was 1.169 billion USD with an operating margin of about 4.6%, and net income came in at 0.854 billion USD (net margin ~3.3%), culminating in an EPS of approximately 1.85–1.86 USD on a diluted basis. The results indicate meaningful deleveraging headwinds on the bottom line despite some sequential improvement in revenue QoQ (+0.9%). EBITDA stood at ~1.956 billion USD with an EBITDA margin near 7.6%, underscoring ongoing cost and mix-related pressures that outweighed the topline rebound.
Key drivers behind the quarter include continued promotional intensity, mix shifts toward value-oriented mainstream categories, and elevated inventory levels contributing to working-capital dynamics. Cash flow from operations was 0.599 billion USD, with capital expenditures of 1.80 billion USD, producing negative free cash flow of about 1.201 billion USD. The balance sheet shows cash and cash equivalents of 0.954 billion USD against total debt of 19.034 billion USD, resulting in net debt around 18.081 billion USD. Inventory stood at 17.117 billion USD, and current liabilities exceeded current assets (total current assets 20.393 billion USD vs. total current liabilities 23.783 billion USD), signaling near-term liquidity considerations that management and the finance team will need to monitor closely.
Looking ahead, management commentary (where disclosed) emphasizes ongoing investments in digital capabilities, supply-chain efficiency, and tighter cost controls. While no explicit quarterly or annual guidance is included in the data provided, the near-term trajectory suggests a focus on restoring gross margin through better mix and price integrity, improving inventory turns, and expanding omnichannel capabilities to drive productivity. The investment thesis remains cautiously constructive over the longer term if Target can stabilize discretionary demand, execute inventory normalization, and realize incremental scale benefits from digital and omnichannel initiatives.