Target (TGT) Q4 2024 Earnings
How Did TGT Stock React to Q4 2024 Earnings?
S&P 500 over the same 30 days: −6.96%.
Did TGT Beat Earnings? Q4 2024 Results
Yes. Target reported Q4 2024 earnings of $2.41 a share on Mar 4, 2025, beating the $2.25 consensus estimate by 7.1%. Revenue was $30.9B against a $30.8B estimate.
Target delivered a better-than-expected fourth quarter, posting GAAP diluted EPS of $2.41 against a Wall Street consensus of $2.25, a beat of roughly 7.07%, while revenue of $30.91 billion edged past the $30.83 billion estimate by 0.27%, even as the top line fell 3.1% year over year, partly reflecting the calendar headwind of a 53rd week in the prior fiscal year that contributed approximately $1.70 billion in net sales. The clearest driver of the upside was a decisive swing in traffic and digital engagement: comparable sales grew 1.5%, customer visits rose 2.1%, and digital comparable sales surged 8.7%, with same-day delivery growing more than 25%, a meaningful reversal from the negative 4.4% comp Target recorded in Q4 2023. Margin pressure remained real, with operating income margin compressing to 4.7% from 5.8% a year ago on higher fulfillment and promotional costs. Management's forward tone was deliberately cautious, guiding fiscal 2025 GAAP EPS to $8.80 to $9.80 on roughly flat comparable sales, with tariff uncertainty and cost timing expected to weigh disproportionately on first-quarter profitability.
- Q4 comparable sales growth of 1.5% driven by strong traffic and digital performance
- Digital comparable sales grew 8.7% in Q4; Same-Day delivery via Target Circle 360 grew more than 25%
- Strong Q4 performance in Beauty, Apparel, Entertainment, Sporting Goods, and Toys
- Comp sales trends in Apparel and Hardlines accelerated by nearly four percentage points vs Q3
- Traffic grew 2.1% in Q4 (number of transactions)
- Full-year efficiency efforts delivered cost savings of more than $2 billion over the last two years
- Full-year gross margin rate improved to 28.2% from 27.5% driven by product cost improvements and advertising/marketplace revenue growth
“Our team grew traffic and delivered better-than-expected sales and profitability in our biggest quarter of the year. Results were led by strong performance in Beauty, Apparel, Entertainment, Sporting Goods and Toys.”
Target CEO, on the earnings call
What Was Target's Outlook in Q4 2024?
For full-year fiscal 2025, Target expects net sales growth in a range around 1%, reflecting comparable sales growth around flat. The company expects a modest increase in operating margin rate compared to full-year 2024, an effective tax rate of 23-24%, and GAAP and Adjusted EPS of $8.80 to $9.80. Management cautioned that February net sales declined slightly due to cold weather affecting apparel and declining consumer confidence impacting discretionary categories, and tariff uncertainty combined with cost timing will create meaningful year-over-year profit pressure in Q1 relative to the rest of the year.
TGT YoY Financials
| Metric | Q4 2024 | Q4 2023 | Year over year |
|---|---|---|---|
| Revenue | $30.9B | $31.9B | −3.2% |
| Gross Profit | $8.1B | $8.5B | −4.7% |
| Operating Income | $1.5B | $1.9B | −21.3% |
| Net Income | $1.1B | $1.4B | −20.2% |
TGT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.