Justin Sullivan Introduction Most of us investors are familiar with consumer staples and merchandise retailers like Target (NYSE:TGT) and Walmart (WMT). I often hear my family & friends say they prefer the former over Walmart when it comes to shopping for their goods and services. To be honest, I don't spend a lot of time at either as I shop for most of my necessities on base since there are no taxes. This being said, I'm still very familiar with not only Target's business, but their dividend as well, w ...

Discount retailer Target (NYSE:TGT) ended 2023 on a strong note rising 40% from its 52-week lows. That’s continuing into the new year despite a big drop on the first day of trading that set back TGT stock. Although a better-than-expected Q3 earnings report helped lift shares ahead of Christmas, the retail environment remains weak. Holiday sales were below expectations and the economy remains precariously balanced. Inflation is nearing the Federal Reserve’s 2% target level, but only if you exclude food and f ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

sanfel Target Corporation (NYSE:TGT) is one of the largest and most successful retailers in the United States, with a market cap of $65.81 billion and annual revenue of nearly $110 billion. The company has been able to differentiate itself from its competitors by offering a wide range of products, from essentials to discretionary items, at affordable prices and with a stylish and convenient shopping experience. Target has also invested heavily in its digital channels and fulfillment options, such as drive-u ...

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.It also includes access to the Zacks Style Scores.What ar ...

MINNEAPOLIS, Dec. 26, 2023 /PRNewswire/ -- Target Corporation (NYSE: TGT) today announced that The Target Clearance Run — the retailer's annual post-holiday sales event — begins today. Guests will find the biggest savings at the retailer's nearly 2,000 stores, along with additional deals on Target.com and in the Target app, including up to 50% off clothing, shoes, beauty, toys and more while supplies last. "We know our guests love hunting for deals at the end of the holiday season, and The Target Clearance ...

Justin Sullivan/Getty Images News Retail giant Target Corporation (NYSE:TGT), like many names in the space, has struggled for much of 2023. Year-to-date the stock is down more than 6%. Data by YCharts This, however, masks the nearly 24% gain in the share price since the company released earnings results last month. The most recent quarter saw the company outperform expectations, with a noticeable improvement in margins. This article will analyze the results, and what they mean, and offer insight into why I ...

Financial Performance - GAAP diluted earnings per share for Q3 2023 was $2.10, a 36.3% increase from $1.54 in Q3 2022[43] - Total revenue for Q3 2023 was $25.4 billion, a decrease of 4.2% compared to $26.5 billion in Q3 2022[42] - Operating income for Q3 2023 was $1.3 billion, representing a 28.9% increase from $1.0 billion in the prior year[49] - Adjusted diluted earnings per share (EPS) for the three months ended October 28, 2023, was $5.96, compared to $4.09 for the same period last year[65] - EBIT for the three months ended October 28, 2023, was $1,342 million, a 29.8% increase from $1,034 million in the prior year, while EBITDA was $2,064 million, up 20.9% from $1,708 million[66] Sales and Traffic - Comparable sales decreased by 4.9% in Q3 2023, driven by a 4.1% decline in traffic and a 0.8% decrease in average transaction amount[52] - Comparable digitally-originated sales declined by 6.0% in Q3 2023, compared to a 0.3% increase in Q3 2022[52] Cash Flow and Liquidity - Cash flow from operating activities for the nine months ended October 28, 2023, was $5.3 billion, significantly up from $552 million for the same period in 2022[42] - The cash and cash equivalents balance was $1.9 billion as of October 28, 2023, compared to $954 million a year earlier, including $1.0 billion in short-term investments[73] - The company expects its sources of liquidity to be adequate for meeting contractual obligations and planned capital expenditures[83] Expenses and Margins - Gross margin rate for Q3 2023 improved to 27.4% from 24.7% in Q3 2022, attributed to lower freight costs and reduced promotional markdowns[56] - Selling, general, and administrative (SG&A) expense rate increased to 20.9% in Q3 2023 from 19.7% in Q3 2022, reflecting cost increases and lower sales[59] Inventory and Capital Expenditures - Inventory as of October 28, 2023, was $14.7 billion, down from $17.1 billion a year earlier, reflecting improved alignment with sales trends[75] - Capital expenditures for the nine months ended October 28, 2023, decreased to $3.9 billion from $4.3 billion in the prior year[75] Dividends and Shareholder Returns - Dividends paid totaled $507 million ($1.10 per share) for Q3 2023, a 1.9% increase from $502 million ($1.08 per share) in Q3 2022[76] - Total dividends for the nine months ended October 28, 2023, were $1.5 billion ($3.26 per share), reflecting a 13.2% increase from $1.3 billion ($2.88 per share) in the same period of 2022[76] - No share repurchases were made during the nine months ended October 28, 2023[77] Credit and Financing - As of October 28, 2023, the company's credit ratings were A2 from Moody's, A from Standard and Poor's, and A from Fitch[80] - The company obtained a new $1.0 billion 364-day unsecured revolving credit facility in October 2023, expiring in October 2024[81] - The company had $2.1 billion outstanding under its commercial paper program as of October 29, 2022, with no balances outstanding as of October 28, 2023[81] Risk Management and Compliance - There were no material changes in primary risk exposures or management of market risks from the previous fiscal year[88] - The company has maintained effective disclosure controls and procedures as evaluated by management[90] - No material developments were reported for any previously reported legal proceedings during the quarterly period ended October 28, 2023[92]

Target Corporation (NYSE:TGT) Q3 2023 Earnings Conference Call November 15, 2023 8:00 AM ET Company Participants John Hulbert - Vice President Investor Relations Brian Cornell - Chair & Chief Executive Officer Christina Hennington - Chief Growth Officer John Mulligan - Chief Operating Officer Michael Fiddelke - Chief Financial Officer Conference Call Participants Robby Ohmes - Bank of America Rupesh Parikh - Oppenheimer Michael Lasser - UBS Edward Yruma - Piper Sandler Kate McShane - Goldman Sachs Joe Feldm ...

Financial Performance - GAAP diluted earnings per share for Q2 2023 were $1.80, a 357.6% increase compared to $0.39 in Q2 2022[45]. - Total revenue for Q2 2023 was $24.8 billion, reflecting a decrease of 4.9% from $26.0 billion in Q2 2022, with comparable sales down 5.4%[43][51]. - Operating income for Q2 2023 was $1.2 billion, representing a 273.0% increase from $321 million in the prior year[51]. - Non-GAAP adjusted EPS for the three months ended July 29, 2023, was $1.80, compared to $0.39 in the prior-year period[71]. - Net earnings for the three months ended July 29, 2023, were $835 million, a 356.5% increase from $183 million in the prior-year period[72]. - EBIT for the three months ended July 29, 2023, was $1,213 million, a 268.8% increase from $329 million in the prior-year period[72]. Cash Flow and Liquidity - Cash flow from operating activities for the first half of 2023 was $3.4 billion, a significant increase from $47 million in the same period of 2022[44]. - Operating cash flows for the six months ended July 29, 2023, were $3.4 billion, a significant increase from $47 million for the same period in 2022, driven by higher net earnings and improved working capital[81]. - As of July 29, 2023, the company's cash and cash equivalents balance was $1.6 billion, down from $2.2 billion in January 2023 and $1.1 billion in July 2022[80]. - The company has $1.0 billion in 364-day and $3.0 billion in unsecured revolving credit facilities, with no outstanding balances as of July 29, 2023[88]. - The company believes its sources of liquidity will be adequate to meet contractual obligations, working capital, and planned capital expenditures for the foreseeable future[90]. Margins and Expenses - The gross margin rate for Q2 2023 was 27.0%, compared to 21.5% in Q2 2022[51]. - Gross margin rate for the three months ended July 29, 2023, was 27.0%, up from 21.5% in the prior-year period[61]. - SG&A expense rate increased to 20.9% for the three months ended July 29, 2023, compared to 19.2% in the prior-year period[64]. - Net interest expense rose to $141 million for the three months ended July 29, 2023, compared to $112 million in the prior-year period[67]. - Effective income tax rate increased to 22.2% for the three months ended July 29, 2023, from 15.8% in the prior-year period[68]. Inventory and Sales - Comparable digitally-originated sales decreased by 10.5% in Q2 2023, while comparable stores-originated sales declined by 4.3%[55]. - Inventory levels have decreased as of July 29, 2023, compared to January 28, 2023, reflecting effective inventory management strategies[47]. - Inventory decreased to $12.7 billion as of July 29, 2023, from $13.5 billion in January 2023 and $15.3 billion in July 2022, reflecting alignment with sales trends and supply chain improvements[82]. Customer Engagement and Loyalty - RedCard penetration decreased to 18.6% in Q2 2023 from 20.1% in Q2 2022, indicating a decline in customer engagement with the loyalty program[58]. Capital Allocation and Investments - Capital allocation priorities include investing in business growth, maintaining competitive dividends, and repurchasing shares[79]. - Cash required for investing activities increased to $2.8 billion for the six months ended July 29, 2023, compared to $2.5 billion for the same period in 2022, due to capital investments[82]. - Dividends paid totaled $499 million ($1.08 per share) for the three months ended July 29, 2023, and $996 million ($2.16 per share) for the six months ended July 29, 2023, representing a 20% increase per share compared to the same periods in 2022[83]. - The company did not repurchase any shares during the six months ended July 29, 2023[84]. Credit Ratings and Risk Management - As of July 29, 2023, the company's credit ratings were A2 from Moody's, A from Standard and Poor's, and A from Fitch, indicating strong creditworthiness[87]. - No material changes in primary risk exposures or management of market risks were reported compared to the previous fiscal year[95].