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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): May 22, 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 May 22, 2024, Target Corporation issued a News Release containing its financial results for the three months ended May 4, 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: May 22, 2024By:/s/ Michael J. Fiddelke
 Michael J. Fiddelke
 Executive Vice President and Chief Operating Officer
 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 First Quarter Earnings

First quarter operating income margin rate of 5.3 percent reflects a 140 basis point improvement in gross margin rate as compared to the prior year.
First quarter comparable sales declined 3.7 percent, in line with expectations.
Digital comparable sales grew 1.4 percent. Same-day services grew nearly 9 percent, led by more than 13 percent growth in Drive Up.
Sales declines, primarily in discretionary categories, were partially offset by continued growth in Beauty.
Discretionary sales trends continued to improve vs. prior quarters, led by an improvement of nearly 4 percentage points in apparel as compared to Q4 of 2023.
The Company successfully relaunched its free-to-join Target Circle loyalty program in April, and welcomed more than 1 million new members to the platform in the first quarter.
Inventory at the end of Q1 was 7 percent lower than last year, even as the Company saw higher in-stock levels than a year ago.

For additional media materials, please visit:
https://corporate.target.com/news-features/article/2024/05/q1-2024-earnings

MINNEAPOLIS (May 22, 2024) – Target Corporation (NYSE: TGT) today announced its first quarter 2024 financial results, which reflected sales and profit performance consistent with the Company's previously provided expectations.
The Company reported first quarter GAAP and Adjusted earnings per share1 (EPS) of $2.03, compared with $2.05 in 2023. The attached tables provide a reconciliation of non-GAAP to GAAP measures. All earnings per share figures refer to diluted EPS.

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1Adjusted EPS, a non-GAAP financial measure, excludes the impact of certain discretely managed items. See the tables of this release for additional information about the items that have been excluded from Adjusted EPS.

Target Corporation Reports First Quarter Earnings — Page 2 of 11
“Our first quarter financial performance was in line with our expectations on both the top and bottom line, tracking the trajectory we outlined for this year and setting up a return to growth in the second quarter,” said Brian Cornell, chair and chief executive of Target Corporation. “Our topline performance improved for the third consecutive quarter, with growth in our digital business led by strength in our same-day fulfillment services. Consumers continue to respond to the newness and value that we offer across our shopping experience, and we’re pleased with early results from the relaunch of Target Circle. Looking ahead, our team will deliver for our guests through lower prices, a seasonally relevant assortment, ease and convenience, as we keep investing in our strategy and efficiency initiatives to get back to growth and deliver on our longer-term financial goals.”

Guidance
For the second quarter, the Company expects a 0 to 2 percent increase in its comparable sales, and GAAP and Adjusted EPS of $1.95 to $2.35.
For the full year, the Company continues to expect a 0 to 2 percent increase in its comparable sales, and GAAP and Adjusted EPS of $8.60 to $9.60.

Operating Results
Comparable sales declined 3.7 percent in the first quarter, reflecting a comparable store sales decline of 4.8 percent partially offset by a comparable digital sales increase of 1.4 percent. Total revenue of $24.5 billion was 3.1 percent lower than last year, reflecting a total sales decline of 3.2 percent and a 3.9 percent increase in other revenue. First quarter operating income of $1.3 billion was 2.4 percent lower than last year, driven by lower sales volume.
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Target Corporation Reports First Quarter Earnings — Page 3 of 11

First quarter operating income margin rate was 5.3 percent in 2024, compared with 5.2 percent in 2023. First quarter gross margin rate was 27.7 percent, compared with 26.3 percent in 2023, reflecting the net impact of merchandising activities, including cost improvements that more than offset higher promotional markdown rates, combined with favorable category mix and lower book to physical inventory adjustments as compared to the prior year. First quarter SG&A expense rate was 21.1 percent in 2024, compared with 19.8 percent in 2023, reflecting the combined impact of lower sales and higher costs, including continued investments in pay and benefits and marketing, partially offset by disciplined cost management.

Interest Expense and Taxes
The Company’s first quarter 2024 net interest expense was $106 million, compared with $147 million last year, primarily driven by an increase in interest income reflecting higher cash balances year-over-year.
First quarter 2024 effective income tax rate was 22.7 percent, compared with the prior year rate of 21.1 percent, reflecting lower discrete benefits as compared to the prior year.

Capital Deployment and Return on Invested Capital
The Company paid dividends of $508 million in the first quarter, compared with $497 million last year, reflecting a 1.9 percent increase in the dividend per share.
The Company did not repurchase any stock in the first quarter. As of the end of the quarter, the Company had approximately $9.7 billion of remaining capacity under the repurchase program approved by Target’s Board of Directors in August 2021.
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Target Corporation Reports First Quarter Earnings — Page 4 of 11
For the trailing twelve months through first quarter 2024, after-tax return on invested capital (ROIC) was 15.4 percent, compared with 11.4 percent for the trailing twelve months through first 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 first 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 "Q1 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 second 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 First Quarter Earnings — Page 5 of 11
TARGET CORPORATION
 
Consolidated Statements of Operations
 Three Months Ended 
(millions, except per share data) (unaudited)May 4, 2024April 29, 2023Change
Sales $24,143 $24,948 (3.2)%
Other revenue388 374 3.9 
Total revenue24,531 25,322 (3.1)
Cost of sales17,449 18,386 (5.1)
Selling, general and administrative expenses
5,168 5,025 2.8 
Depreciation and amortization (exclusive of depreciation included in cost of sales)
618 583 6.2 
Operating income
1,296 1,328 (2.4)
Net interest expense106 147 (27.8)
Net other income(29)(23)26.9 
Earnings before income taxes
1,219 1,204 1.3 
Provision for income taxes277 254 9.0 
Net earnings $942 $950 (0.8)%
Basic earnings per share
$2.04 $2.06 (1.0)%
Diluted earnings per share
$2.03 $2.05 (1.0)%
Weighted average common shares outstanding
Basic462.2 460.9 0.3 %
Diluted463.9 462.9 0.2 %
Antidilutive shares1.6 1.2 
Dividends declared per share$1.10 $1.08 1.9 %



Target Corporation Reports First Quarter Earnings — Page 6 of 11
TARGET CORPORATION
 
Consolidated Statements of Financial Position
(millions, except footnotes) (unaudited)May 4, 2024February 3, 2024April 29, 2023
Assets
Cash and cash equivalents$3,604 $3,805 $1,321 
Inventory11,730 11,886 12,616 
Other current assets1,744 1,807 1,836 
Total current assets17,078 17,498 15,773 
Property and equipment
Land6,544 6,547 6,493 
Buildings and improvements37,587 37,066 35,198 
Fixtures and equipment8,341 8,765 7,473 
Computer hardware and software3,265 3,428 3,067 
Construction-in-progress1,538 1,703 2,822 
Accumulated depreciation(24,161)(24,413)(22,657)
Property and equipment, net33,114 33,096 32,396 
Operating lease assets3,486 3,362 2,640 
Other noncurrent assets1,439 1,400 1,341 
Total assets$55,117 $55,356 $52,150 
Liabilities and shareholders’ investment
Accounts payable$11,561 $12,098 $11,935 
Accrued and other current liabilities5,684 6,090 5,732 
Current portion of long-term debt and other borrowings2,614 1,116 200 
Total current liabilities19,859 19,304 17,867 
Long-term debt and other borrowings13,487 14,922 16,010 
Noncurrent operating lease liabilities3,392 3,279 2,621 
Deferred income taxes2,543 2,480 2,289 
Other noncurrent liabilities1,996 1,939 1,758 
Total noncurrent liabilities21,418 22,620 22,678 
Shareholders’ investment
Common stock39 38 38 
Additional paid-in capital6,747 6,761 6,541 
Retained earnings7,519 7,093 5,448 
Accumulated other comprehensive loss(465)(460)(422)
Total shareholders’ investment13,840 13,432 11,605 
Total liabilities and shareholders’ investment$55,117 $55,356 $52,150 
Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 462,635,539, 461,675,441, and 461,552,843 shares issued and outstanding as of May 4, 2024, February 3, 2024, and April 29, 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 First Quarter Earnings — Page 7 of 11
TARGET CORPORATION
 
Consolidated Statements of Cash Flows
 Three Months Ended
(millions) (unaudited)May 4, 2024April 29, 2023
Operating activities  
Net earnings $942 $950 
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation and amortization718 667 
Share-based compensation expense72 43 
Deferred income taxes64 95 
Noncash (gains) / losses and other, net (31)(11)
Changes in operating accounts:  
Inventory156 883 
Other assets43 34 
Accounts payable(524)(1,463)
Accrued and other liabilities(339)67 
Cash provided by operating activities1,101 1,265 
Investing activities  
Expenditures for property and equipment(674)(1,605)
Proceeds from disposal of property and equipment
Other investments
Cash required for investing activities(671)(1,602)
Financing activities  
Change in commercial paper, net— 90 
Reductions of long-term debt(32)(46)
Dividends paid(508)(497)
Shares withheld for taxes on share-based compensation(91)(118)
Cash required for financing activities(631)(571)
Net decrease in cash and cash equivalents(201)(908)
Cash and cash equivalents at beginning of period3,805 2,229 
Cash and cash equivalents at end of period$3,604 $1,321 



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

Rate AnalysisThree Months Ended
(unaudited)May 4, 2024April 29, 2023
Gross margin rate27.7 %26.3 %
SG&A expense rate21.1 19.8 
Depreciation and amortization expense rate (exclusive of depreciation included in cost of sales)
2.5 2.3 
Operating income margin rate5.3 5.2 
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 $142 million and $174 million of profit-sharing income under our credit card program agreement for the three months ended May 4, 2024 and April 29, 2023, respectively.

Comparable SalesThree Months Ended
(unaudited)May 4, 2024April 29, 2023
Comparable sales change(3.7)%0.0 %
Drivers of change in comparable sales
Number of transactions (traffic)(1.9)0.9 
Average transaction amount(1.9)(0.9)

Comparable Sales by ChannelThree Months Ended
(unaudited)May 4, 2024April 29, 2023
Stores originated comparable sales change(4.8)%0.7 %
Digitally originated comparable sales change1.4 (3.4)
 
Sales by ChannelThree Months Ended
(unaudited)May 4, 2024April 29, 2023
Stores originated81.7 %82.5 %
Digitally originated18.3 17.5 
Total100 %100 %

Sales by Fulfillment ChannelThree Months Ended
(unaudited)May 4, 2024April 29, 2023
Stores 97.7 %97.2 %
Other2.3 2.8 
Total100 %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 Ended
(unaudited)May 4, 2024April 29, 2023
Total Target Circle Card Penetration18.0 %19.0 %


Target Corporation Reports First Quarter Earnings — Page 9 of 11
 
Number of Stores and Retail Square FeetNumber of Stores
Retail Square Feet (a)
(unaudited)May 4,
2024
February 3,
2024
April 29,
2023
May 4,
2024
February 3,
2024
April 29,
2023
170,000 or more sq. ft.273 273 274 48,824 48,824 48,985 
50,000 to 169,999 sq. ft.1,547 1,542 1,530 193,529 192,908 191,543 
49,999 or less sq. ft.143 141 150 4,301 4,207 4,465 
Total1,963 1,956 1,954 246,654 245,939 244,993 
(a)In thousands; reflects total square feet less office, supply chain facilities, and vacant space.



Target Corporation Reports First 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. 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 Ended
May 4, 2024April 29, 2023Change
GAAP and adjusted diluted earnings per share
$2.03 $2.05 (1.0)%

Reconciliation of Non-GAAP
Adjusted EPS Guidance
Guidance
(per share) (unaudited)
Q2 2024Full Year 2024
GAAP diluted earnings per share guidance
$1.95 - $2.35$8.60 - $9.60
Estimated adjustments
Other (a)
$— $— 
Adjusted diluted earnings per share guidance
$1.95 - $2.35$8.60 - $9.60
(a)Second 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 
(dollars in millions) (unaudited)May 4, 2024April 29, 2023Change
Net earnings $942 $950 (0.8)%
 + Provision for income taxes277 254 9.0 
 + Net interest expense106 147 (27.8)
EBIT
$1,325 $1,351 (1.9)%
 + Total depreciation and amortization (a)
718 667 7.7 
EBITDA
$2,043 $2,018 1.3 %
(a)Represents total depreciation and amortization, including amounts classified within Depreciation and Amortization and within Cost of Sales.


Target Corporation Reports First 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
May 4, 2024 (a)
April 29, 2023
Operating income
$5,675 $3,830 
 + Net other income
99 57 
EBIT
5,774 3,887 
 + Operating lease interest (b)
133 96 
  - Income taxes (c)
1,314 770 
Net operating profit after taxes$4,593 $3,213 

Denominator
May 4, 2024April 29, 2023April 30, 2022
Current portion of long-term debt and other borrowings$2,614 $200 $1,089 
 + Noncurrent portion of long-term debt13,487 16,010 13,379 
 + Shareholders' investment13,840 11,605 10,774 
 + Operating lease liabilities (d)
3,723 2,921 2,854 
  - Cash and cash equivalents
3,604 1,321 1,112 
Invested capital$30,060 $29,415 $26,984 
Average invested capital (e)
$29,737 $28,199 
After-tax return on invested capital
15.4 %11.4 %
(a)The trailing twelve months ended May 4, 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 SG&A. 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 22.2 percent and 19.3 percent for the trailing twelve months ended May 4, 2024, and April 29, 2023, respectively. For the twelve months ended May 4, 2024, and April 29, 2023, includes tax effect of $1.3 billion and $0.8 billion, respectively, related to EBIT, and $30 million and $18 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.

v3.24.1.1.u2
Cover Page
May 22, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date May 22, 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

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