Welcome to Rug News
momeni tower ad Dynamic Rugs S&H Tower
  • Printer Friendly Version
  • Decrease Text SizeIncrease Text Size
  • PDF
Retail

Target Corporation Reports Fourth Quarter and Full-Year 2024 Earnings

Target reports Q4 results benefited from higher traffic, strong digital sales and improved discretionary performance.

3/4/2025
Target's new Boiling Springs, South Carolina, location was among the 23 new stores opened in 2024.
 
MINNEAPOLIS -- Target Corp. (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."

2024 Highlights:

• Opened 23 new stores and invested in dozens of existing stores

• Opened several new supply chain facilities, including two new food distribution centers,
a flow center and other investments in our network

• Scaled our Target Plus marketplace offerings, delivering more than $1 billion in gross merchandise value for the first time in 2024, up 35% from last year

• Drove personalized connections through Roundel, our digital advertising business, which saw growth in the mid-teens in 2024 and delivered nearly $2 billion in value

• Continued tech investments, including GenAI-powered solutions to make working and shopping at Target even easier

• Declared our 230th consecutive dividend payment since October 1967, and resumed our share repurchase program in 2024

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.

Read the full release here.
Back

Related Stories

Safavieh Kalaty Tower Trans Ocean Tower HRI Tower