Target (TGT) Q3 2024 Earnings
How Did TGT Stock React to Q3 2024 Earnings?
S&P 500 over the same 30 days: +0.71%.
Did TGT Beat Earnings? Q3 2024 Results
No. Target reported Q3 2024 earnings of $1.85 a share on Nov 20, 2024, missing the $2.30 consensus estimate by 19.6%. Revenue was $25.7B against a $25.9B estimate.
Target delivered a deeply disappointing third quarter, missing on both the top and bottom lines as rising costs overwhelmed modest sales growth. GAAP diluted EPS came in at $1.85, falling nearly 19.56% short of the $2.30 consensus estimate and declining from $2.10 a year ago, while revenue of $25.67 billion grew just 1.1% year-over-year but still trailed Wall Street's $25.90 billion forecast by 0.90%. The core problem was a profitability squeeze: gross margin contracted to 27.2% and operating income dropped 11.2% to $1.17 billion, pressured by higher digital fulfillment costs, supply chain expenses from new facility ramp-ups, and elevated team member compensation. The results underscore a broader challenge facing mid-tier retailers, with budget-conscious consumers making more frequent but smaller trips, driving a 2.4% gain in guest traffic even as average transaction amounts fell 2.0%. Looking ahead, Target guided fourth-quarter comparable sales to approximately flat and GAAP EPS of $1.85 to $2.45, reflecting continued caution heading into a holiday season that analysts are watching closely for signs of consumer strain.
- Guest traffic grew 2.4% over the prior year
- Digital comparable sales grew 10.8% driven by nearly 20% growth in same-day delivery and double digit growth in Drive Up
- Beauty comparable sales grew more than 6%
- Food & Beverage and Essentials categories grew low-single digits
- Comparable store sales declined 1.9%
- Average transaction amount declined 2.0%
- Digitally originated sales represented 18.5% of total sales, up from 16.8%
“I'm proud of our team's efforts to navigate through a volatile operating environment during the third quarter. We saw several strengths across the business, including a 2.4 percent increase in traffic, nearly 11 percent growth in the digital channel, and continued growth in beauty and frequency categories. At the same time, we encountered some unique challenges and cost pressures that impacted our bottom-line performance.”
Target CEO, on the earnings call
What Was Target's Outlook in Q3 2024?
For Q4 2024, Target expects approximately flat comparable sales and GAAP and Adjusted EPS of $1.85 to $2.45, translating to a full-year expected GAAP and Adjusted EPS range of $8.30 to $8.90. No discrete adjustments between GAAP and adjusted EPS are currently anticipated.
TGT YoY Financials
| Metric | Q3 2024 | Q3 2023 | Year over year |
|---|---|---|---|
| Revenue | $25.7B | $25.4B | +1.1% |
| Gross Profit | $6.9B | $7.2B | −5.5% |
| Operating Income | $1.2B | $1.3B | −11.3% |
| Net Income | $854.0M | $971.0M | −12.1% |
TGT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.