Target (TGT) Q3 2024 Earnings Breakdown

Key Highlights:

• Positive comparable sales growth: Driven by strong traffic and digital performance, Target reported a 0.3% increase in comparable sales for Q3 2024.
• Strong Guest Traffic: Guest traffic grew 2.4% compared to the previous year.
• Digital Channel Success: Digital comparable sales surged by 10.8%, driven by significant growth in same-day delivery (nearly 20%) and Drive Up services (double-digit growth).
• Category Performance: Beauty saw a remarkable sales growth of over 6%, while Food & Beverage and Essentials categories experienced low single-digit growth.
• Gross Margin: Third quarter gross margin rate dipped slightly by 0.2 percentage points year-over-year, attributed to higher digital fulfillment and supply chain costs. However, year-to-date gross margin rate has expanded by a full percentage point.
• Earnings Per Share: GAAP and Adjusted EPS for Q3 2024 was $1.85, representing an 11.9% decrease compared to the previous year.
• Positive Outlook: Despite challenges, Target remains optimistic about its long-term financial goals and expects flat comparable sales and GAAP and Adjusted EPS of $1.85 to $2.45 for the fourth quarter. The full-year expected GAAP and Adjusted EPS range is projected to be $8.30 to $8.90.