Note: In this release financial results in fiscal 2024, a
52-week year, are being compared with fiscal 2023, a 53-week
year.
- On that basis, full-year 2024 Net Sales1 declined
0.8 percent, and GAAP & Adjusted EPS2 declined 0.9
percent.
- Based on the Company's estimate of the impact of the extra
week in 2023, Target's 2024 full-year Net Sales increased
approximately 1 percent and earnings per share were nearly 3
percent higher than in 2023 on a 52-week basis.
Q4 2024 Highlights
- Fourth quarter comparable sales growth of 1.5 percent
reflected strong traffic and digital performance.
- Comp sales trends in Apparel and Hardlines accelerated by
nearly four percentage points as compared to the third
quarter.
- Digital comparable sales grew 8.7 percent in the fourth
quarter.
- Same-Day delivery powered by Target Circle 360TM
grew more than 25 percent compared to last year.
- GAAP and Adjusted EPS of $2.41
was near the high end of the Company's guidance range, driven by
stronger-than-expected topline performance, particularly in Toys,
Electronics, and Apparel.
Full-Year 2024 Highlights
- Full-year 2024 comparable sales grew 0.1 percent, within the
guidance range provided at the beginning of the fiscal year.
- Beauty delivered mid-single digit comparable sales growth,
with Food & Beverage, Apparel, and Essentials also delivering
growth.
- Traffic grew 1.4 percent, reflecting increases in both
stores and digital channels.
- Full-year GAAP and Adjusted EPS of $8.86 was within the Company's original guidance
range for the year, reflecting stronger-than-expected topline
performance in the fourth quarter.
- The Company's ongoing efficiency efforts have delivered cost
savings of more than $2 billion over
the last two years.
For additional media materials, please
visit:
https://corporate.target.com/news-features/article/2025/03/q4-fy2024-earnings
MINNEAPOLIS, March 4,
2025 /PRNewswire/ -- Target Corporation
(NYSE: TGT) today announced its fourth-quarter and full-year 2024
results, both of which included one fewer week of sales as compared
to 2023. The Company reported fourth-quarter GAAP and
Adjusted earnings per share (EPS) of $2.41, compared with $2.98 in 2023. GAAP and Adjusted EPS were
$8.86 for full-year 2024, compared
with $8.94 in the prior year.
The attached tables provide a reconciliation of non-GAAP to GAAP
measures. All earnings per share figures refer to diluted
EPS.
"Our team grew traffic and delivered better-than-expected sales
and profitability in our biggest quarter of the year," said
Brian Cornell, chair and chief
executive officer of Target Corporation. "Results were led by
strong performance in Beauty, Apparel, Entertainment, Sporting
Goods and Toys. As we look ahead, our continued investments in
digital capabilities, stores and supply chain—combined with a focus
on newness, value, speed and reliability—will further differentiate
our one-of-a-kind physical and digital shopping experience.
Consumers continue to be drawn to the everyday discovery and
delight that only Target can deliver, and we're committed to
leveraging our strategy, scale and unique position in retail to
build on this distinct competitive advantage and drive long-term
profitable growth."
Guidance
The Company has the following expectations for full-year
2025:
- Net Sales growth in a range around 1 percent, reflecting
comparable sales growth in a range around flat
- A modest increase in the Company's operating margin rate
compared to full-year 2024
- An effective tax rate of 23 to 24 percent
- GAAP and Adjusted EPS of $8.80 to
$9.80
In light of ongoing consumer uncertainty and a small decline in
February Net Sales, combined with tariff uncertainty and the
expected timing of certain costs within the fiscal year, the
Company expects to see meaningful year-over-year profit pressure in
its first quarter relative to the remainder of the year.
“During February, we saw record performance around Valentines
Day. However, our topline performance for the month was soft, as
uncharacteristically cold weather across the U.S. affected apparel
sales, and declining consumer confidence impacted our discretionary
assortment overall,” said Jim Lee,
chief financial officer. “Looking ahead, we expect to see a
moderation in this trend as apparel sales respond to warmer weather
around the country, and consumers turn to Target for upcoming
seasonal moments such as the Easter holiday. We will continue
to monitor these trends and will remain appropriately cautious with
our expectations for the year ahead.”
Operating Results
The Company's total comparable sales increased 1.5 percent in
the fourth quarter, reflecting a comparable store sales decline of
0.5 percent and a comparable digital sales increase of 8.7 percent.
Net Sales of $30.9 billion were 3.1
percent lower in the fourth quarter compared with 2023, which
included an additional week. Operating income was
$1.5 billion in fourth quarter 2024,
a decrease of 21.3 percent from $1.9
billion in 2023.
Full-year Net Sales decreased 0.8 percent to $106.6 billion from $107.4
billion last year, reflecting a 0.1 percent increase in
comparable sales as well as the benefit of sales from new stores
and growth in non-merchandise revenues, offset by the impact of one
fewer week of sales in 2024.
Fourth quarter operating income margin rate was 4.7 percent
in 2024 compared with 5.8 percent in 2023. Fourth quarter gross
margin rate3 was 26.2 percent, compared with 26.6
percent in 2023, reflecting higher digital fulfillment and supply
chain costs and higher promotional and clearance markdown
rates. These pressures were partially offset by the net
benefit of other merchandising activities.
Full-year operating income of $5.6
billion in 2024 declined 2.5 percent from $5.7 billion last year. Full-year gross margin
rate was 28.2 percent, compared with 27.5 percent in 2023,
reflecting product cost improvements, growth in advertising and
marketplace revenues and lower book-to-physical inventory
adjustments, which more than offset higher promotional and
clearance markdown rates and higher digital fulfillment &
supply chain costs.
Fourth quarter SG&A expense rate was 19.4 percent in 2024,
compared with 18.8 percent in 2023. Full-year SG&A
expense rate was 20.6 percent in 2024, compared with 20.0 percent
in 2023. Rate increases in both periods reflect higher
costs, including continued investments in pay and benefits.
Interest Expense and Taxes
The Company's fourth quarter 2024 net interest expense was
$90 million, compared with
$107 million last year.
Full-year 2024 net interest expense was $411
million, compared with $502
million in 2023. For both the fourth quarter and the
full-year, the decrease was driven primarily by an increase in
interest income.
Fourth quarter 2024 effective income tax rate was 21.5
percent, compared with 22.6 percent last year. The decrease was
primarily driven by higher discrete benefits in fourth quarter
2024. The Company's full-year 2024 effective income tax rate
was 22.2 percent compared with 21.9 percent in 2023. The
increase primarily reflects lower discrete tax benefits compared to
the prior year.
Capital Deployment and Return on Invested Capital
The Company paid dividends of $513
million in the fourth quarter, compared with $508 million last year, reflecting a 1.8 percent
increase in the dividend per share.
The Company repurchased $506
million of its shares in the fourth quarter, retiring 3.7
million shares of common stock at an average price of $136.80. As of the end of the fourth
quarter, the Company had approximately $8.7
billion of remaining capacity under the repurchase program
approved by Target's Board of Directors in August 2021.
For the trailing twelve months through fourth quarter 2024,
after-tax return on invested capital (ROIC) was 15.4 percent,
compared with 16.1 percent for the twelve months through fourth
quarter 2023. This decrease was driven primarily by lower
profitability, including the impact of one fewer week in the 2024
fiscal year, and an increase in average invested capital. The
tables in this release provide additional information about the
Company's ROIC calculation.
Webcast Details
Target will webcast its financial community meeting, including a
Q&A session, beginning at 8:00 a.m.
CST today. Investors and the media are invited to listen to
the meeting at Corporate.Target.com/Investors (click on "2025
Financial Community Meeting, including Fourth Quarter and Full-Year
2024 Earnings" under "Events & Presentations"). A replay of the
webcast will be provided when available.
Miscellaneous
Statements in this release regarding the Company's future
financial performance, including its fiscal 2025 full-year
guidance, near-term profit expectations, and long-term growth
expectations, 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.
|
1 In the
fourth quarter of 2024, the Company changed its presentation of
revenue in its Consolidated Statements of Operations, consolidating
the previous three-line format (Sales, Other Revenue, and Total
Revenue) to a single line labeled "Net Sales", which reflects all
revenues (formerly Total Revenue). The Company believes this
presentation better reflects its strategy, which includes growing
capabilities and business offerings that leverage Target's assets
and competitive strengths. See the tables in this release for
additional information about amounts included in Net
Sales.
|
|
|
2 Adjusted
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.
|
|
|
3 In the fourth quarter of
2024, the Company changed its calculation of gross margin to Net
Sales (previously "Total Revenues") less Cost of Sales, with gross
margin rate calculated as gross margin divided by Net Sales.
Previously gross margin rate was calculated based only on
Merchandise Sales. In addition, the Company reclassified certain
expenses from Selling, General, and Administrative (SG&A)
Expenses to Cost of Sales. Prior year amounts have been updated to
conform to the current period presentation. A schedule summarizing
the impact of these changes on previously reported amounts has been
posted on the Company's Investor Relations website at
corporate.target.com.
|
|
TARGET
CORPORATION
Consolidated
Statements of Operations
|
|
|
Three Months Ended
|
|
|
|
Twelve Months
Ended
|
|
|
|
(millions, except per share data) (unaudited)
|
|
February 1,
2025
|
|
February 3,
2024 (a)
|
|
Change
|
|
February 1,
2025
|
|
February 3,
2024 (a)
|
|
Change
|
|
Net sales
(b)
|
|
30,915
|
|
31,919
|
|
(3.1)
|
|
106,566
|
|
107,412
|
|
(0.8)
|
|
Cost of sales
(c)
|
|
22,802
|
|
23,427
|
|
(2.7)
|
|
76,502
|
|
77,828
|
|
(1.7)
|
|
Selling, general and
administrative expenses (c)
|
|
6,000
|
|
6,005
|
|
(0.1)
|
|
21,969
|
|
21,462
|
|
2.4
|
|
Depreciation and
amortization (exclusive of depreciation included in cost of
sales)
|
|
646
|
|
622
|
|
3.9
|
|
2,529
|
|
2,415
|
|
4.7
|
|
Operating
income
|
|
1,467
|
|
1,865
|
|
(21.3)
|
|
5,566
|
|
5,707
|
|
(2.5)
|
|
Net interest
expense
|
|
90
|
|
107
|
|
(15.6)
|
|
411
|
|
502
|
|
(18.1)
|
|
Net other
income
|
|
(29)
|
|
(28)
|
|
4.2
|
|
(106)
|
|
(92)
|
|
14.6
|
|
Earnings before income
taxes
|
|
1,406
|
|
1,786
|
|
(21.3)
|
|
5,261
|
|
5,297
|
|
(0.7)
|
|
Provision for income
taxes
|
|
303
|
|
404
|
|
(25.2)
|
|
1,170
|
|
1,159
|
|
0.9
|
|
Net earnings
|
|
$
1,103
|
|
$
1,382
|
|
(20.2) %
|
|
$
4,091
|
|
$
4,138
|
|
(1.1) %
|
|
Basic earnings per
share
|
|
$
2.42
|
|
$
2.99
|
|
(19.3) %
|
|
$
8.89
|
|
$
8.96
|
|
(0.9) %
|
|
Diluted earnings per
share
|
|
$
2.41
|
|
$
2.98
|
|
(19.3) %
|
|
$
8.86
|
|
$
8.94
|
|
(0.9) %
|
|
Weighted average common
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
456.8
|
|
461.7
|
|
(1.1) %
|
|
460.4
|
|
461.5
|
|
(0.2) %
|
|
Diluted
|
|
458.4
|
|
463.1
|
|
(1.0) %
|
|
461.8
|
|
462.8
|
|
(0.2) %
|
|
Antidilutive
shares
|
|
0.2
|
|
0.8
|
|
|
|
0.5
|
|
2.1
|
|
|
|
Dividends declared per
share
|
|
$
1.12
|
|
$
1.10
|
|
1.8 %
|
|
$
4.46
|
|
$
4.38
|
|
1.8 %
|
|
(a)
|
The fourth quarter and
full year 2023 consisted of 14 weeks and 53 weeks, respectively,
compared with 13 weeks and 52 weeks in the comparable 2024 periods.
The extra week contributed $1.7 billion of Net Sales for the fourth
quarter and full year 2023.
|
|
(b)
|
In the fourth quarter
of 2024, the Company changed its presentation of revenue in its
Consolidated Statements of Operations, consolidating the previous
three-line format (Sales, Other Revenue, and Total Revenue) to a
single line labeled "Net Sales", which reflects all revenues
(formerly Total Revenue). See the Net Sales table for additional
information about amounts included in Net Sales.
|
|
(c)
|
In the fourth quarter
of 2024, the Company reclassified certain expenses related to its
advertising and third party marketplace business offerings to
conform to the current year presentation. The reclassifications
increased Cost of Sales by $24 million and $92 million for the
three and twelve months ended February 3, 2024, respectively, with
equal and offsetting decreases to SG&A Expenses. These
reclassifications had no impact on Net Sales, Operating
Income, Net Earnings, or Earnings Per Share.
|
|
TARGET
CORPORATION
Consolidated
Statements of Financial Position
|
|
(millions, except
footnotes) (unaudited)
|
|
February 1,
2025
|
|
February 3,
2024
|
|
Assets
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
4,762
|
|
$
3,805
|
|
Inventory
|
|
12,740
|
|
11,886
|
|
Other current
assets
|
|
1,952
|
|
1,807
|
|
Total current
assets
|
|
19,454
|
|
17,498
|
|
Property and
equipment
|
|
|
|
|
|
Land
|
|
6,735
|
|
6,547
|
|
Buildings and
improvements
|
|
38,752
|
|
37,066
|
|
Fixtures and
equipment
|
|
8,917
|
|
8,765
|
|
Computer hardware and
software
|
|
3,710
|
|
3,428
|
|
Construction-in-progress
|
|
1,185
|
|
1,703
|
|
Accumulated
depreciation
|
|
(26,277)
|
|
(24,413)
|
|
Property and
equipment, net
|
|
33,022
|
|
33,096
|
|
Operating lease
assets
|
|
3,763
|
|
3,362
|
|
Other noncurrent
assets
|
|
1,530
|
|
1,400
|
|
Total
assets
|
|
$
57,769
|
|
$
55,356
|
|
Liabilities and
shareholders' investment
|
|
|
|
|
|
Accounts
payable
|
|
$
13,053
|
|
$
12,098
|
|
Accrued and other
current liabilities
|
|
6,110
|
|
6,090
|
|
Current portion of
long-term debt and other borrowings
|
|
1,636
|
|
1,116
|
|
Total current
liabilities
|
|
20,799
|
|
19,304
|
|
Long-term debt and
other borrowings
|
|
14,304
|
|
14,922
|
|
Noncurrent operating
lease liabilities
|
|
3,582
|
|
3,279
|
|
Deferred income
taxes
|
|
2,303
|
|
2,480
|
|
Other noncurrent
liabilities
|
|
2,115
|
|
1,939
|
|
Total noncurrent
liabilities
|
|
22,304
|
|
22,620
|
|
Shareholders'
investment
|
|
|
|
|
|
Common
stock
|
|
38
|
|
38
|
|
Additional paid-in
capital
|
|
6,996
|
|
6,761
|
|
Retained
earnings
|
|
8,090
|
|
7,093
|
|
Accumulated other
comprehensive loss
|
|
(458)
|
|
(460)
|
|
Total shareholders'
investment
|
|
14,666
|
|
13,432
|
|
Total liabilities
and shareholders' investment
|
|
$
57,769
|
|
$
55,356
|
|
|
Common
Stock Authorized 6,000,000,000 shares, $0.0833 par value;
455,566,995 and 461,675,441 shares issued and outstanding as of
February 1, 2025, and February 3, 2024,
respectively.
|
|
|
Preferred
Stock Authorized 5,000,000 shares, $0.01 par value; no
shares were issued or outstanding during any period
presented.
|
|
TARGET
CORPORATION
Consolidated
Statements of Cash Flows
|
|
|
Twelve Months
Ended
|
|
(millions) (unaudited)
|
|
February 1,
2025
|
|
February 3,
2024
(a)
|
|
Operating
activities
|
|
|
|
|
|
Net earnings
|
|
$
4,091
|
|
$
4,138
|
|
Adjustments to
reconcile net earnings to cash provided by operations:
|
|
|
|
|
|
Depreciation and
amortization
|
|
2,981
|
|
2,801
|
|
Share-based
compensation expense
|
|
304
|
|
251
|
|
Deferred income
taxes
|
|
(180)
|
|
298
|
|
Noncash losses /
(gains) and other, net
|
|
26
|
|
94
|
|
Changes in operating
accounts:
|
|
|
|
|
|
Inventory
|
|
(854)
|
|
1,613
|
|
Other
assets
|
|
(308)
|
|
(85)
|
|
Accounts
payable
|
|
1,008
|
|
(1,216)
|
|
Accrued and other
liabilities
|
|
299
|
|
727
|
|
Cash provided by
operating activities
|
|
7,367
|
|
8,621
|
|
Investing
activities
|
|
|
|
|
|
Expenditures for
property and equipment
|
|
(2,891)
|
|
(4,806)
|
|
Proceeds from disposal
of property and equipment
|
|
3
|
|
24
|
|
Other
investments
|
|
28
|
|
22
|
|
Cash required for
investing activities
|
|
(2,860)
|
|
(4,760)
|
|
Financing
activities
|
|
|
|
|
|
Additions to long-term
debt
|
|
741
|
|
—
|
|
Reductions of
long-term debt
|
|
(1,139)
|
|
(147)
|
|
Dividends
paid
|
|
(2,046)
|
|
(2,011)
|
|
Repurchase of
stock
|
|
(1,007)
|
|
—
|
|
Shares withheld for
taxes on share-based compensation
|
|
(99)
|
|
(127)
|
|
Cash required for
financing activities
|
|
(3,550)
|
|
(2,285)
|
|
Net increase in cash
and cash equivalents
|
|
957
|
|
1,576
|
|
Cash and cash
equivalents at beginning of period
|
|
3,805
|
|
2,229
|
|
Cash and cash
equivalents at end of period
|
|
$
4,762
|
|
$
3,805
|
|
(a)
2023 consisted of 53 weeks compared with 52 weeks in
2024.
|
|
TARGET
CORPORATION
Operating
Results
|
|
Net
Sales
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
(millions)
(unaudited)
|
February 1,
2025
|
|
February 3,
2024 (a)
|
|
February 1,
2025
|
|
February 3,
2024 (a)
|
|
Apparel and
accessories
|
$
4,344
|
|
$
4,410
|
|
$
16,505
|
|
$
16,485
|
|
Beauty
|
3,444
|
|
3,424
|
|
13,173
|
|
12,538
|
|
Food and
beverage
|
6,520
|
|
6,774
|
|
23,828
|
|
23,899
|
|
Hardlines
|
6,150
|
|
6,196
|
|
15,784
|
|
16,162
|
|
Home furnishings and
décor
|
5,087
|
|
5,530
|
|
16,699
|
|
17,760
|
|
Household
essentials
|
4,786
|
|
5,046
|
|
18,614
|
|
18,746
|
|
Other merchandise
sales
|
97
|
|
87
|
|
217
|
|
213
|
|
Merchandise
sales
|
30,428
|
|
31,467
|
|
104,820
|
|
105,803
|
|
Advertising revenue
(b)
|
190
|
|
167
|
|
649
|
|
522
|
|
Credit card profit
sharing
|
142
|
|
159
|
|
576
|
|
667
|
|
Other
|
155
|
|
126
|
|
521
|
|
420
|
|
Net sales
|
$
30,915
|
|
$
31,919
|
|
$
106,566
|
|
$
107,412
|
|
(a)
|
The fourth quarter and
full year 2023 consisted of 14 weeks and 53 weeks, respectively,
compared with 13 weeks and 52 weeks in the comparable 2024 periods.
The extra week contributed $1.7 billion of Net Sales for the fourth
quarter and full year 2023.
|
|
(b)
|
Primarily represents
revenue related to advertising services provided via the Company's
Roundel digital advertising business offering. Roundel services are
classified as either Net Sales or as a reduction of Cost of Sales
or SG&A Expenses, depending on the nature of the advertising
arrangement.
|
|
Rate
Analysis
|
|
Three Months Ended
|
|
Twelve Months
Ended
|
|
(unaudited)
|
|
February 1,
2025
|
|
February 3,
2024
|
|
February 1,
2025
|
|
February 3,
2024
|
|
Gross margin rate
(a)
|
|
26.2 %
|
|
26.6 %
|
|
28.2 %
|
|
27.5 %
|
|
SG&A expense rate
(a)
|
|
19.4
|
|
18.8
|
|
20.6
|
|
20.0
|
|
Depreciation and
amortization (exclusive of depreciation included in cost of sales)
expense rate
|
|
2.1
|
|
1.9
|
|
2.4
|
|
2.2
|
|
Operating income margin
rate
|
|
4.7
|
|
5.8
|
|
5.2
|
|
5.3
|
|
(a)
|
Reflects the impact of
a reclassification of prior year amounts to conform with current
year presentation. Refer to note (c) to the Consolidated
Statements of Operations for additional information.
|
|
|
Note: Gross
margin is calculated as Net Sales less Cost of Sales. All rates are
calculated by dividing the applicable amount by Net Sales.
Previously gross margin rate was calculated based only on
Merchandise Sales. The calculation change aligns with the Company's
fourth quarter 2024 transition to a single-line revenue
presentation on its Consolidated Statements of Operations, with
prior period amounts updated to conform to the current year
presentation. The Company also updated prior period gross margin
rates to conform to the current year calculations, which resulted
in an approximate 1 percentage point increase in the gross margin
rate for both the three and twelve months ended February 3,
2024.
|
Sales Metrics
Comparable sales include all Merchandise Sales, except sales
from stores open less than 13 months or that have been
closed. Digitally originated sales include all Merchandise
Sales initiated through mobile applications and the Company's
websites.
|
Comparable
Sales
|
|
Three Months Ended
|
|
Twelve Months
Ended
|
|
(unaudited)
|
|
February 1,
2025
|
|
February 3,
2024
|
|
February 1,
2025
|
|
February 3,
2024
|
|
Comparable sales
change
|
|
1.5 %
|
|
(4.4) %
|
|
0.1 %
|
|
(3.7) %
|
|
Drivers of change in
comparable sales:
|
|
|
|
|
|
|
|
|
|
Number of
transactions
|
|
2.1
|
|
(1.7)
|
|
1.4
|
|
(2.4)
|
|
Average transaction
amount
|
|
(0.6)
|
|
(2.8)
|
|
(1.3)
|
|
(1.4)
|
|
|
Comparable Sales by
Channel
|
|
Three Months Ended
|
|
Twelve Months
Ended
|
|
(unaudited)
|
|
February 1,
2025
|
|
February 3,
2024
|
|
February 1,
2025
|
|
February 3,
2024
|
|
Stores originated
comparable sales change
|
|
(0.5) %
|
|
(5.4) %
|
|
(1.6) %
|
|
(3.5) %
|
|
Digitally originated
comparable sales change
|
|
8.7
|
|
(0.7)
|
|
7.5
|
|
(4.8)
|
|
|
|
|
|
|
Sales by
Channel
|
|
Three Months Ended
|
|
Twelve Months
Ended
|
|
(unaudited)
|
|
February 1,
2025
|
|
February 3,
2024
|
|
February 1,
2025
|
|
February 3,
2024
|
|
Stores
originated
|
|
77.2 %
|
|
78.7 %
|
|
80.4 %
|
|
81.7 %
|
|
Digitally
originated
|
|
22.8
|
|
21.3
|
|
19.6
|
|
18.3
|
|
Total
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
Sales by Fulfillment
Channel
|
|
Three Months Ended
|
|
Twelve Months
Ended
|
|
(unaudited)
|
|
February 1,
2025
|
|
February 3,
2024
|
|
February 1,
2025
|
|
February 3,
2024
|
|
Stores
|
|
97.3 %
|
|
97.3 %
|
|
97.6 %
|
|
97.4 %
|
|
Other
|
|
2.7
|
|
2.7
|
|
2.4
|
|
2.6
|
|
Total
|
|
100 %
|
|
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 Same Day Delivery.
|
|
Target Circle Card
Penetration
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
(unaudited)
|
|
February 1,
2025
|
|
February 3,
2024
|
|
February 1,
2025
|
|
February 3,
2024
|
|
Total Target Circle
Card Penetration
|
|
17.6 %
|
|
18.4 %
|
|
17.8 %
|
|
18.6 %
|
|
|
|
|
|
|
Number of Stores and
Retail Square Feet
|
|
Number of
Stores
|
|
Retail Square Feet
(a)
|
|
(unaudited)
|
|
February 1,
2025
|
|
February 3,
2024
|
|
February 1,
2025
|
|
February 3,
2024
|
|
170,000 or more sq.
ft.
|
|
273
|
|
273
|
|
48,824
|
|
48,824
|
|
50,000 to 169,999 sq.
ft.
|
|
1,559
|
|
1,542
|
|
195,050
|
|
192,908
|
|
49,999 or less sq.
ft.
|
|
146
|
|
141
|
|
4,404
|
|
4,207
|
|
Total
|
|
1,978
|
|
1,956
|
|
248,278
|
|
245,939
|
|
(a)
In thousands, reflects total square
feet less office, distribution center, and vacant space.
|
TARGET CORPORATION
Reconciliation of Non-GAAP Financial Measures
To provide additional transparency, the Company has disclosed
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.
Management believes this information is useful in providing
period-to-period comparisons of the results of Target's operations.
This measure is not in accordance with, or an alternative to,
generally accepted accounting principles in the United States (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
Target's 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
(unaudited)
|
|
Three Months
Ended
|
|
|
|
Twelve Months
Ended
|
|
|
|
February 1,
2025
|
|
February 3,
2024 (a)
|
|
Change
|
|
February 1,
2025
|
|
February 3,
2024 (a)
|
|
Change
|
|
GAAP and adjusted
diluted earnings per share
|
|
$
2.41
|
|
$
2.98
|
|
(19.3) %
|
|
$
8.86
|
|
$
8.94
|
|
(0.9) %
|
|
(a)
|
The fourth quarter and
full year 2023 consisted of 14 weeks and 53 weeks, respectively,
compared with 13 weeks and 52 weeks in the comparable 2024
periods.
|
|
Reconciliation of
Non-GAAP
Adjusted EPS
Guidance
|
Guidance
|
|
Full Year
2025
|
|
(unaudited)
|
Per Share
|
|
GAAP diluted earnings
per share guidance
|
$8.80 -
$9.80
|
|
Estimated
adjustments
|
|
|
Other
(a)
|
$
—
|
|
Adjusted diluted
earnings per share guidance
|
$8.80 -
$9.80
|
|
(a)
|
2025 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. Management
believes these measures provide meaningful information about
Target's operational efficiency compared with its 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
EBITDA
|
|
Three Months Ended
|
|
|
|
Twelve Months
Ended
|
|
|
|
(dollars in
millions) (unaudited)
|
|
February 1,
2025
|
|
February 3,
2024 (a)
|
|
Change
|
|
February 1,
2025
|
|
February 3,
2024 (a)
|
|
Change
|
|
Net earnings
|
|
$
1,103
|
|
$
1,382
|
|
(20.2) %
|
|
$
4,091
|
|
$
4,138
|
|
(1.1) %
|
|
+ Provision for
income taxes
|
|
303
|
|
404
|
|
(25.2)
|
|
1,170
|
|
1,159
|
|
0.9
|
|
+ Net interest
expense
|
|
90
|
|
107
|
|
(15.6)
|
|
411
|
|
502
|
|
(18.1)
|
|
EBIT
|
|
$
1,496
|
|
$
1,893
|
|
(21.0) %
|
|
$
5,672
|
|
$
5,799
|
|
(2.2) %
|
|
+ Total
depreciation and amortization (b)
|
|
766
|
|
729
|
|
5.2
|
|
2,981
|
|
2,801
|
|
6.4
|
|
EBITDA
|
|
$
2,262
|
|
$
2,622
|
|
(13.7) %
|
|
$
8,653
|
|
$
8,600
|
|
0.6 %
|
|
(a)
|
The fourth quarter and
full year 2023 consisted of 14 weeks and 53 weeks, respectively,
compared with 13 weeks and 52 weeks in the comparable
2024 periods.
|
|
(b)
|
Represents total
depreciation and amortization, including amounts classified within
Depreciation and Amortization and within Cost of Sales.
|
The Company has 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. Management believes
this metric is useful in assessing the effectiveness of Target's
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)
|
|
|
|
|
|
|
Trailing Twelve
Months
|
|
|
|
Numerator
|
|
February 1,
2025
|
|
February 3,
2024 (a)
|
|
|
|
Operating
income
|
|
$
5,566
|
|
$
5,707
|
|
|
|
+ Net other
income
|
|
106
|
|
92
|
|
|
|
EBIT
|
|
5,672
|
|
5,799
|
|
|
|
+ Operating lease
interest (b)
|
|
159
|
|
120
|
|
|
|
- Income taxes
(c)
|
|
1,297
|
|
1,295
|
|
|
|
Net operating profit
after taxes
|
|
$
4,534
|
|
$
4,624
|
|
|
|
Denominator
|
|
February 1,
2025
|
|
February 3,
2024
|
|
January 28,
2023
|
|
Current portion of
long-term debt and other borrowings
|
|
$
1,636
|
|
$
1,116
|
|
$
130
|
|
+ Noncurrent
portion of long-term debt
|
|
14,304
|
|
14,922
|
|
16,009
|
|
+ Shareholders'
investment
|
|
14,666
|
|
13,432
|
|
11,232
|
|
+ Operating lease
liabilities (d)
|
|
3,935
|
|
3,608
|
|
2,934
|
|
- Cash and cash
equivalents
|
|
4,762
|
|
3,805
|
|
2,229
|
|
Invested
capital
|
|
$
29,779
|
|
$
29,273
|
|
$
28,076
|
|
Average invested
capital (e)
|
|
$
29,526
|
|
$
28,674
|
|
|
|
|
After-tax return on
invested capital
|
|
15.4 %
|
|
16.1 %
|
|
|
|
|
(a)
|
2023 consisted of 53
weeks compared with 52 weeks in 2024.
|
|
(b)
|
Represents the add-back
to operating income driven by the hypothetical interest expense the
Company would incur if the property under its 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 Target and its
competitors.
|
|
(c)
|
Calculated using the
effective tax rates, which were 22.2 percent and 21.9 percent for
the trailing twelve months ended February 1, 2025, and
February 3, 2024, respectively. Includes tax effect of $1.3
billion related to EBIT for each of the twelve month periods ended
February 1, 2025, and February 3, 2024, and $35 million
and $26 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.
|
|
(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.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/target-corporation-reports-fourth-quarter-and-full-year-2024-earnings-302391332.html
SOURCE Target Corporation
