"We're continuing to make the right investments in our business that will help us deliver profitable growth in the years ahead."
— Brian Cornell
03Detailed Report
TGT
Target Corporation
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 27, 2026
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Executive Summary
In Q3 2024, Target Corporation (TGT) demonstrated resilience amidst economic challenges, achieving a slight revenue increase of 0.3% year-over-year to $25.67 billion. Despite a backdrop of cautious consumer spending and economic uncertainties, the company reported an increase in traffic, which grew by 2.4%, representing over 10 million additional transactions. The operational focus remains on stabilizing discretionary categories which showed weakness, particularly in apparel and home goods. Target continues to prioritize investments in its digital initiatives and operational efficiencies, as seen by robust growth in digital sales, up nearly 11%, and same-day delivery services expanding approximately 20%. Management remains committed to long-term strategies, navigating through current volatility while laying down the foundation for future growth.
Key Performance Indicators
Revenue
Decreasing
25.67B
QoQ: 0.85% | YoY: -19.58%
Gross Profit
Increasing
7.91B
30.82% margin
QoQ: 3.37% | YoY: 0.22%
Operating Income
Increasing
2.43B
QoQ: 48.32% | YoY: 29.75%
Net Income
Decreasing
854.00M
QoQ: -28.36% | YoY: -38.21%
EPS
Decreasing
1.85
QoQ: -28.29% | YoY: -38.13%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Overview:
- Revenue: $25.67 billion (Q3 2023: $25.6 billion)
- Net Income: $854 million (Net income margin: 3.34%)
- Earnings Per Share (EPS): $1.85
- Operating Income: $2.43 billion, with a margin of 9.4%.
- Cash Flow from Operations: $739 million.
- Total Assets: $58.53 billion, with cash and equivalents of $3.43 billion.
- Total Liabilities: $44.04 billion, leading to total shareholders’ equity of $14.49 billion.
Ratios:
- Current Ratio: 0.94 (below the industry average of 1.25, indicating pressure on liquidity)
- Debt to Equity Ratio: 1.34 (higher compared to peers such as Walmart at 0.70, showing significant leverage)
- Return on Equity (ROE): 5.89% - still modest, reflecting the need for improved profit margins.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
25.67B
-19.58%
0.85%
Gross Profit
7.91B
0.22%
3.37%
Operating Income
2.43B
29.75%
48.32%
Net Income
854.00M
-38.21%
-28.36%
EPS
1.85
-38.13%
-28.29%
Key Financial Ratios
Gross Profit Margin
Fair
30.80%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
9.45%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
3.33%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
1.46%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
5.89%
Return on equity is acceptable but below top-tier companies
Current Ratio
Concern
0.94
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
1.34
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Fair Value
20.38x
P/E ratio in line with market averages
Price to Book
Premium
4.81x
Trading at premium to book value, reflects strong intangibles or growth
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