Target Corporation (NYSE:TGT) Q3 2021 Earnings Conference Call November 17, 2021 8:00 AM ET Company Participants Brian Cornell - Chairman and Chief Executive Officer Christina Hennington - Chief Growth Officer John Mulligan - Chief Operating Officer Michael Fiddelke - Chief Financial Officer John Hulbert - Vice President, Investor Relations Conference Call Participants Michael Lasser - UBS Chris Horvers - JPMorgan Karen Short - Barclays Kelly Bania - BMO Capital Kate McShane - Goldman Sachs Paul Lejuez - Ci ...

Financial Data and Key Metrics Changes - In Q2 2021, Target's comparable sales increased by 8.9% on top of a record 24.3% growth a year ago, resulting in total sales expanding more than 36% or over $6.6 billion over the last two years [6][44] - Adjusted EPS for Q2 was $3.64, up nearly 8% compared to last year, and double the performance from two years ago [6][48] - Gross margin rate for Q2 was 30.4%, down about 50 basis points from 30.9% a year ago, primarily due to higher product and freight costs [46][48] Business Line Data and Key Metrics Changes - Apparel led growth with mid-teens growth, while food and beverage delivered low double-digit growth, particularly in bakery and deli [19][20] - Digital sales grew 10% in Q2, building on a record growth of 195% last year, with same-day services growing 55% [7][45] - Hardlines experienced mid-single-digit growth, while electronics saw a moderate decline in the mid-single-digit range [20][21] Market Data and Key Metrics Changes - Store channel was the primary growth driver with comparable sales growing 8.7%, while digital channel comp sales grew 10% [45] - Traffic increased by 12.7% in Q2, partially offset by a 3.4% decline in average tickets [44] - Digital penetration of total sales slightly fell to 17% from 17.2% last year, but remains significantly higher than 7.3% in Q2 2019 [46] Company Strategy and Development Direction - Target Forward, a new sustainability strategy, aims to design sustainable brands, eliminate waste, and accelerate opportunity and equity [13][28] - The company continues to invest in its team, including raising the starting wage to $15 and introducing a Debt-Free Education Assistance Program [12][41] - Target is focused on enhancing its multi-category assortment and expanding partnerships with brands like Ulta Beauty [23][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing volatility due to the Delta variant but expressed confidence in the business's resilience and flexibility [14][15] - The company expects to generate comparable sales growth in the high single-digit range for the fall season, with an operating margin rate of 8% or higher for the full year [55][56] - Management emphasized the importance of team investments and the positive impact on guest satisfaction and operational performance [42][56] Other Important Information - Target's after-tax return on invested capital for the trailing 12 months was 31.7%, a significant increase from 17.2% a year ago [53][54] - The company plans to invest approximately $3.5 billion in capital expenditures for the year, focusing on new stores and supply chain projects [50][51] - Target ended Q2 with cash and cash equivalents of about $7.4 billion, reflecting a strong cash position [52] Q&A Session Summary Question: How is the back-to-school season performing and any effects from Delta? - Management reported a strong start to the back-to-school season with broad-based shopping across categories [61] Question: Insights on gross margin outlook for the back half of the year? - Management discussed the ability to manage profitability and offset challenges, indicating confidence in maintaining margins [63]

Financial Data and Key Metrics Changes - Comparable sales grew by nearly 23%, marking the fourth consecutive quarter of over 20% growth [5][40] - Total sales expanded by $6.5 billion in Q1, reflecting more than $1 billion in market share gains [6][40] - Adjusted EPS reached $3.69, an increase of over 600% from the previous year and more than 140% higher than Q1 2019 [8][44] Business Line Data and Key Metrics Changes - Store comp sales increased by 18%, driven primarily by higher traffic [6][40] - Digital comp sales grew by 50% on top of last year's significant growth [7][40] - Apparel sales saw comp growth of over 60%, while home and hard lines also delivered strong performance [9][17] Market Data and Key Metrics Changes - The company gained over $1 billion in market share in Q1, building on a similar gain from the previous year [6][17] - Own brand products grew approximately 36%, the strongest increase recorded [19][40] Company Strategy and Development Direction - The company plans significant investments in store assets, including remodeling hundreds of locations and expanding same-day services [12][30] - Continued focus on enhancing the shopping experience through investments in safety, cleanliness, and team training [13][38] - Emphasis on sustainability and community engagement, with a commitment to spend over $2 billion with Black-owned businesses by 2025 [27][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive macro and consumer backdrop, expecting mid to high single-digit comp increases in Q2 [48][50] - The company is focused on agility and contingency planning to adapt to a volatile environment [51][52] - Management highlighted the importance of maintaining strong guest engagement and loyalty moving forward [55][56] Other Important Information - The company is investing in new regional distribution centers to enhance supply chain capacity [30][31] - First quarter gross margin rate was 30%, reflecting a 490 basis point improvement from the previous year [41][42] - The company ended the quarter with approximately $7.8 billion in cash and cash equivalents [46] Q&A Session Summary Question: Inquiry about new brands and margin implications in apparel - Management highlighted strong performance in both own and national brands, with own brands growing by 36% [58][59] Question: Discussion on same-day services growth and efficiency improvements - Management noted that same-day services have better economics than home delivery, with ongoing investments in technology and process improvements [62][64] Question: Insights on the evolution of same-day services - Management emphasized the growth of drive-up services and the importance of enhancing guest experience and team efficiency [66][69]

Target Corporation (NYSE:TGT) Q4 2020 Earnings Conference Call March 2, 2021 9:00 AM ET Company Participants Brian Cornell - Chairman, Chief Executive Officer Michael Fiddelke - Executive Vice President, Chief Financial Officer Christina Hennington - Executive Vice President, Chief Growth Officer John Mulligan - Executive Vice President, Chief Operating Officer John Hulbert - Investor Relations Conference Call Participants Chris Horvers - JP Morgan Karen Short - Barclays Edward Kelly - Wells Fargo Ed Yruma ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission File Number 1-6049 TARGET CORPORATION (Exact name of registrant as specified in its charter) Minnesota (State or other jurisdiction ...

Target Corporation (NYSE:TGT) Q3 2020 Results Conference Call November 18, 2020 8:00 AM ET Company Participants John Hulbert - Vice President, Investor Relations Brian Cornell - Chairman and Chief Executive Officer John Mulligan - Chief Operating Officer Michael Fiddelke - Chief Financial Officer Conference Call Participants Chris Horvers - JP Morgan Stephanie Wissink - Jefferies Edward Kelly - Wells Fargo Edward Yruma - KeyBanc Capital Markets Karen Short - Barclays Paul Lejuez - Citi Paul Trussell - Deuts ...