tgt-20241102



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 November 2, 2024

☐ 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 of incorporation or organization)

1000 Nicollet Mall, Minneapolis, Minnesota

(Address of principal executive offices)

41-0215170

(I.R.S. Employer Identification No.)

55403

(Zip Code)

612-304-6073

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.0833 per share

TGT

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Total shares of common stock, par value $0.0833, outstanding at November 21, 2024, were 458,211,929.


						Table of Contents
						Index to Notes

TARGET CORPORATION

TABLE OF CONTENTS


PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)
	Consolidated Statements of Operations	1
	Consolidated Statements of Comprehensive Income	2
	Consolidated Statements of Financial Position	3
	Consolidated Statements of Cash Flows	4
	Consolidated Statements of Shareholders’ Investment	5
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 4.	Controls and Procedures	23

PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	24
Item 1A.	Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3.	Defaults Upon Senior Securities	24
Item 4.	Mine Safety Disclosures	24
Item 5.	Other Information	24
Item 6.	Exhibits	25

Signatures		26


			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements


Consolidated Statements of Operations
	Three Months Ended				Nine Months Ended
(millions, except per share data) (unaudited)	November 2, 2024		October 28, 2023		November 2, 2024		October 28, 2023
Sales	$	25,228	$	25,004	$	74,392	$	74,336
Other revenue	440		394		1,259		1,157
Total revenue	25,668		25,398		75,651		75,493
Cost of sales	18,375		18,149		53,623		54,333
Selling, general and administrative expenses	5,486		5,316		16,046		15,525
Depreciation and amortization (exclusive of depreciation included in cost of sales)	639		616		1,883		1,793
Operating income	1,168		1,317		4,099		3,842
Net interest expense	105		107		321		395
Net other income	(28)		(25)		(77)		(64)
Earnings before income taxes	1,091		1,235		3,855		3,511
Provision for income taxes	237		264		867		755
Net earnings	$	854	$	971	$	2,988	$	2,756
Basic earnings per share	$	1.86	$	2.10	$	6.47	$	5.97
Diluted earnings per share	$	1.85	$	2.10	$	6.45	$	5.96
Weighted average common shares outstanding
Basic	460.1		461.6		461.6		461.4
Diluted	461.5		462.6		462.9		462.7
Antidilutive shares	0.5		3.0		0.5		2.6

See accompanying Notes to Consolidated Financial Statements.


TARGET CORPORATION						Q3 2024 Form 10-Q			1


			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes


Consolidated Statements of Comprehensive Income
	Three Months Ended				Nine Months Ended
(millions) (unaudited)	November 2, 2024		October 28, 2023		November 2, 2024		October 28, 2023
Net earnings	$	854	$	971	$	2,988	$	2,756
Other comprehensive (loss) / income, net of tax
Pension benefit liabilities	—		—		—		3
Cash flow hedges and currency translation adjustment	(4)		(5)		(14)		(14)
Other comprehensive loss	(4)		(5)		(14)		(11)
Comprehensive income	$	850	$	966	$	2,974	$	2,745

See accompanying Notes to Consolidated Financial Statements.


TARGET CORPORATION						Q3 2024 Form 10-Q			2


			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes


Consolidated Statements of Financial Position
(millions, except footnotes) (unaudited)	November 2, 2024		February 3, 2024		October 28, 2023
Assets
Cash and cash equivalents	$	3,433	$	3,805	$	1,910
Inventory	15,165		11,886		14,731
Other current assets	1,956		1,807		1,958
Total current assets	20,554		17,498		18,599
Property and equipment
Land	6,666		6,547		6,520
Buildings and improvements	38,666		37,066		36,627
Fixtures and equipment	8,840		8,765		8,490
Computer hardware and software	3,549		3,428		3,312
Construction-in-progress	758		1,703		2,000
Accumulated depreciation	(25,548)		(24,413)		(23,781)
Property and equipment, net	32,931		33,096		33,168
Operating lease assets	3,513		3,362		3,086
Other noncurrent assets	1,533		1,400		1,376
Total assets	$	58,531	$	55,356	$	56,229
Liabilities and shareholders’ investment
Accounts payable	$	14,419	$	12,098	$	14,291
Accrued and other current liabilities	5,738		6,090		6,099
Current portion of long-term debt and other borrowings	1,635		1,116		1,112
Total current liabilities	21,792		19,304		21,502
Long-term debt and other borrowings	14,346		14,922		14,883
Noncurrent operating lease liabilities	3,418		3,279		3,031
Deferred income taxes	2,419		2,480		2,447
Other noncurrent liabilities	2,067		1,939		1,852
Total noncurrent liabilities	22,250		22,620		22,213
Shareholders’ investment
Common stock	38		38		38
Additional paid-in capital	6,916		6,761		6,681
Retained earnings	8,009		7,093		6,225
Accumulated other comprehensive loss	(474)		(460)		(430)
Total shareholders’ investment	14,489		13,432		12,514
Total liabilities and shareholders’ investment	$	58,531	$	55,356	$	56,229

Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 459,244,995, 461,675,441, and 461,651,176 shares issued and outstanding as of November 2, 2024, February 3, 2024, and October 28, 2023, respectively.

Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented.

See accompanying Notes to Consolidated Financial Statements.


TARGET CORPORATION						Q3 2024 Form 10-Q			3


			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes


Consolidated Statements of Cash Flows
	Nine Months Ended
(millions) (unaudited)	November 2, 2024		October 28, 2023
Operating activities
Net earnings	$	2,988	$	2,756
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation and amortization	2,215		2,072
Share-based compensation expense	229		176
Deferred income taxes	(58)		252

Noncash (gains) / losses and other, net	(1)		101
Changes in operating accounts:
Inventory	(3,279)		(1,232)
Other assets	(265)		(208)
Accounts payable	2,362		887
Accrued and other liabilities	(113)		528
Cash provided by operating activities	4,078		5,332
Investing activities
Expenditures for property and equipment	(1,968)		(3,952)
Proceeds from disposal of property and equipment	2		24
Other investments	24		18
Cash required for investing activities	(1,942)		(3,910)
Financing activities

Additions to long-term debt	741		—
Reductions of long-term debt	(1,112)		(114)
Dividends paid	(1,533)		(1,503)
Repurchase of stock	(506)		—

Shares withheld for taxes on share-based compensation	(98)		(124)

Cash required for financing activities	(2,508)		(1,741)
Net decrease in cash and cash equivalents	(372)		(319)
Cash and cash equivalents at beginning of period	3,805		2,229
Cash and cash equivalents at end of period	$	3,433	$	1,910
Supplemental information
Leased assets obtained in exchange for new finance lease liabilities	$	312	$	86
Leased assets obtained in exchange for new operating lease liabilities	416		679

See accompanying Notes to Consolidated Financial Statements.


TARGET CORPORATION						Q3 2024 Form 10-Q			4


			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes


Consolidated Statements of Shareholders’ Investment
	Common	Stock		Additional				Accumulated Other
	Stock	Par		Paid-in		Retained		Comprehensive
(millions) (unaudited)	Shares	Value		Capital		Earnings		(Loss) / Income		Total
January 28, 2023	460.3	$	38	$	6,608	$	5,005	$	(419)	$	11,232
Net earnings	—	—		—		950		—		950
Other comprehensive loss	—	—		—		—		(3)		(3)
Dividends declared	—	—		—		(507)		—		(507)


Stock options and awards	1.3	—		(67)		—		—		(67)
April 29, 2023	461.6	$	38	$	6,541	$	5,448	$	(422)	$	11,605
Net earnings	—	—		—		835		—		835
Other comprehensive loss	—	—		—		—		(3)		(3)
Dividends declared	—	—		—		(516)		—		(516)

Stock options and awards	—	—		69		—		—		69
July 29, 2023	461.6	$	38	$	6,610	$	5,767	$	(425)	$	11,990
Net earnings	—	—		—		971		—		971
Other comprehensive loss	—	—		—		—		(5)		(5)
Dividends declared	—	—		—		(513)		—		(513)


Stock options and awards	0.1	—		71		—		—		71
October 28, 2023	461.7	$	38	$	6,681	$	6,225	$	(430)	$	12,514
Net earnings	—	—		—		1,382		—		1,382
Other comprehensive loss	—	—		—		—		(30)		(30)
Dividends declared	—	—		—		(514)		—		(514)

Stock options and awards	—	—		80		—		—		80
February 3, 2024	461.7	$	38	$	6,761	$	7,093	$	(460)	$	13,432


TARGET CORPORATION						Q3 2024 Form 10-Q			5


			FINANCIAL STATEMENTS			Table of Contents
						Index to Notes

Consolidated Statements of Shareholders’ Investment

Common

Stock

Additional

Accumulated Other

Stock

Par

Paid-in

Retained

Comprehensive

(millions) (unaudited)

Value

Capital

Earnings

(Loss) / Income

Total

February 3, 2024

461.7

SEC Form 10-Q filed by Target Corporation