MINNEAPOLIS, Nov. 20,
2024 /PRNewswire/ --
- Third quarter comparable sales increased 0.3 percent, driven
by strong traffic and digital performance.
- Guest traffic grew 2.4 percent over the prior year.
- Digital comparable sales grew 10.8 percent reflecting nearly
20 percent growth in same-day delivery powered by Target Circle
360™ and double digit growth in Drive Up.
- Beauty comparable sales grew more than 6 percent. Food &
Beverage and Essentials categories grew low-single digits compared
to the prior year.
- Third quarter gross margin rate was down 0.2 percentage
points to the prior year. Year-to-date, gross margin rate has
expanded by a full percentage point compared to last year.
- Third quarter GAAP and Adjusted EPS of $1.85 was down 11.9 percent compared with last
year.
For additional media materials, please
visit:
https://corporate.target.com/news-features/article/2024/11/q3-2024-earnings
Target Corporation (NYSE: TGT) today announced its third quarter
2024 financial results, reflecting comparable sales growth driven
entirely by traffic and strength in the digital channel.
The Company reported third quarter GAAP and Adjusted earnings
per share1 (EPS) of $1.85,
compared with $2.10 in 2023. The
attached tables provide a reconciliation of non-GAAP to GAAP
measures. All earnings per share figures refer to diluted EPS.
|
1Adjusted
EPS, a non-GAAP financial measure, excludes the impact of certain
discretely managed items, when applicable. See the tables of this
release for additional information.
|
"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," said Brian Cornell,
chair and chief executive officer of Target Corporation. "Looking
ahead, our team is energized and ready to deliver the unique
combination of newness and value that holiday shoppers can only
find at Target, and we remain confident in the underlying strength
and fundamentals of our business, and our ability to deliver on our
longer-term financial goals."
Guidance
For the fourth quarter, the Company 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.
Operating Results
Comparable sales increased 0.3 percent in the third quarter,
reflecting a comparable store sales decline of 1.9 percent and a
comparable digital sales increase of 10.8 percent. Total revenue of
$25.7 billion in the third quarter
was 1.1 percent higher than last year, reflecting a total sales
increase of 0.9 percent and an 11.5 percent increase in other
revenue. Third quarter operating income of $1.2 billion was 11.2 percent lower than last
year.
Third quarter operating income margin rate was 4.6 percent in
2024, compared with 5.2 percent in 2023. Third quarter gross margin
rate was 27.2 percent, compared with 27.4 percent in 2023,
reflecting higher digital fulfillment and supply chain costs due to
the cost of managing higher inventory levels, increased digital
sales volume, and new supply chain facilities coming online,
partially offset by lower book to physical inventory adjustments
and the net impact of merchandising activities as compared to the
prior year. Third quarter SG&A expense rate was 21.4
percent in 2024, compared with 20.9 percent in 2023, reflecting the
combined impact of higher costs, including higher team member pay
and benefits and higher general liability expenses, partially
offset by disciplined cost management.
Interest Expense and Taxes
The Company's third quarter 2024 net interest expense was
$105 million, compared with
$107 million last year.
Third quarter 2024 effective income tax rate was 21.7 percent,
compared with the prior year rate of 21.3 percent, reflecting lower
discrete benefits in the current year.
Capital Deployment and Return on Invested Capital
The Company paid dividends of $516
million in the third quarter, compared with $507 million last year, reflecting a 1.8 percent
increase in the dividend per share.
The Company repurchased $354
million of its shares in the third quarter, retiring 2.4
million shares of common stock at an average price of $147.43. As of the end of the quarter, the
Company had approximately $9.2 billion of remaining capacity
under the repurchase program approved by Target's Board of
Directors in August 2021.
For the trailing twelve months through third quarter 2024,
after-tax return on invested capital (ROIC) was 15.9 percent,
compared with 13.9 percent for the trailing twelve months through
third quarter 2023. The increase in ROIC reflects higher operating
income, partially offset by higher average invested capital. The
tables in this release provide additional information about the
Company's ROIC calculation.
Webcast Details
Target will webcast its third quarter earnings conference call
at 7:00 a.m. CT today. Investors and
the media are invited to listen to the meeting
at Corporate.Target.com/Investors (click on "Q3 2024
Target Corporation Earnings Conference Call" under "Events &
Presentations"). A replay of the webcast will be provided when
available. The replay number is 1-800-513-1169.
Miscellaneous
Statements in this release regarding the Company's future
financial performance, including its fiscal 2024 fourth quarter and
full-year guidance, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such statements are subject to risks and uncertainties which could
cause the Company's results to differ materially. The most
important risks and uncertainties are described in Item 1A of the
Company's Form 10-K for the fiscal year ended February 3, 2024. Forward-looking statements
speak only as of the date they are made, and the Company does not
undertake any obligation to update any forward-looking
statement.
About Target
Minneapolis-based Target
Corporation (NYSE: TGT) serves guests at nearly 2,000 stores and at
Target.com, with the purpose of helping all families discover the
joy of everyday life. Since 1946, Target has given 5% of its profit
to communities, which today equals millions of dollars a week.
Additional company information can be found by visiting the
corporate website (corporate.target.com) and press center.
|
TARGET
CORPORATION
|
|
|
Consolidated
Statements of Operations
|
|
|
Three Months Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
(millions, except per share data) (unaudited)
|
|
November 2,
2024
|
|
October 28,
2023
|
|
Change
|
|
November 2,
2024
|
|
October 28,
2023
|
|
Change
|
|
Sales
|
|
$
25,228
|
|
$
25,004
|
|
0.9 %
|
|
$
74,392
|
|
$
74,336
|
|
0.1 %
|
|
Other
revenue
|
|
440
|
|
394
|
|
11.5
|
|
1,259
|
|
1,157
|
|
8.8
|
|
Total
revenue
|
|
25,668
|
|
25,398
|
|
1.1
|
|
75,651
|
|
75,493
|
|
0.2
|
|
Cost of
sales
|
|
18,375
|
|
18,149
|
|
1.2
|
|
53,623
|
|
54,333
|
|
(1.3)
|
|
Selling, general and
administrative expenses
|
|
5,486
|
|
5,316
|
|
3.2
|
|
16,046
|
|
15,525
|
|
3.4
|
|
Depreciation and
amortization (exclusive of
depreciation included in cost of sales)
|
|
639
|
|
616
|
|
3.6
|
|
1,883
|
|
1,793
|
|
5.0
|
|
Operating
income
|
|
1,168
|
|
1,317
|
|
(11.2)
|
|
4,099
|
|
3,842
|
|
6.7
|
|
Net interest
expense
|
|
105
|
|
107
|
|
(1.5)
|
|
321
|
|
395
|
|
(18.7)
|
|
Net other
income
|
|
(28)
|
|
(25)
|
|
11.0
|
|
(77)
|
|
(64)
|
|
19.0
|
|
Earnings before income
taxes
|
|
1,091
|
|
1,235
|
|
(11.6)
|
|
3,855
|
|
3,511
|
|
9.8
|
|
Provision for income
taxes
|
|
237
|
|
264
|
|
(9.9)
|
|
867
|
|
755
|
|
14.9
|
|
Net earnings
|
|
$
854
|
|
$
971
|
|
(12.1) %
|
|
$
2,988
|
|
$
2,756
|
|
8.4 %
|
|
Basic earnings per
share
|
|
$
1.86
|
|
$
2.10
|
|
(11.8) %
|
|
$
6.47
|
|
$
5.97
|
|
8.3 %
|
|
Diluted earnings per
share
|
|
$
1.85
|
|
$
2.10
|
|
(11.9) %
|
|
$
6.45
|
|
$
5.96
|
|
8.3 %
|
|
Weighted average common
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
460.1
|
|
461.6
|
|
(0.3) %
|
|
461.6
|
|
461.4
|
|
0.1 %
|
|
Diluted
|
|
461.5
|
|
462.6
|
|
(0.2) %
|
|
462.9
|
|
462.7
|
|
0.1 %
|
|
Antidilutive
shares
|
|
0.5
|
|
3.0
|
|
|
|
0.5
|
|
2.6
|
|
|
|
Dividends declared per
share
|
|
$
1.12
|
|
$
1.10
|
|
1.8 %
|
|
$
3.34
|
|
$
3.28
|
|
1.8 %
|
|
TARGET
CORPORATION
|
|
|
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.
|
|
TARGET
CORPORATION
|
|
|
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
|
|
TARGET
CORPORATION
|
|
|
Operating
Results
|
|
Rate
Analysis
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
(unaudited)
|
|
November 2,
2024
|
|
October 28,
2023
|
|
November 2,
2024
|
|
October 28,
2023
|
|
Gross margin
rate
|
|
27.2 %
|
|
27.4 %
|
|
27.9 %
|
|
26.9 %
|
|
SG&A expense
rate
|
|
21.4
|
|
20.9
|
|
21.2
|
|
20.6
|
|
Depreciation and
amortization expense rate (exclusive of
depreciation included in cost of sales)
|
|
2.5
|
|
2.4
|
|
2.5
|
|
2.4
|
|
Operating income margin
rate
|
|
4.6
|
|
5.2
|
|
5.4
|
|
5.1
|
|
|
Note: Gross margin rate
is calculated as gross margin (sales less cost of sales) divided by
sales. All other rates are calculated by dividing the applicable
amount by total revenue. Other revenue includes $148 million and
$433 million of profit-sharing income under our credit card program
agreement for the three and nine months ended November 2,
2024, respectively, and $165 million and $508 million for the three
and nine months ended October 28, 2023,
respectively.
|
|
Comparable
Sales
|
|
Three Months Ended
|
|
Nine Months
Ended
|
|
(unaudited)
|
|
November 2,
2024
|
|
October 28,
2023
|
|
November 2,
2024
|
|
October 28,
2023
|
|
Comparable sales
change
|
|
0.3 %
|
|
(4.9) %
|
|
(0.5) %
|
|
(3.5) %
|
|
Drivers of change in
comparable sales
|
|
|
|
|
|
|
|
|
|
Number of transactions
(traffic)
|
|
2.4
|
|
(4.1)
|
|
1.1
|
|
(2.7)
|
|
Average transaction
amount
|
|
(2.0)
|
|
(0.8)
|
|
(1.6)
|
|
(0.8)
|
|
|
Comparable Sales by
Channel
|
|
Three Months Ended
|
|
Nine Months
Ended
|
|
(unaudited)
|
|
November 2,
2024
|
|
October 28,
2023
|
|
November 2,
2024
|
|
October 28,
2023
|
|
Stores originated
comparable sales change
|
|
(1.9) %
|
|
(4.6) %
|
|
(2.0) %
|
|
(2.8) %
|
|
Digitally originated
comparable sales change
|
|
10.8
|
|
(6.0)
|
|
6.9
|
|
(6.7)
|
|
|
Sales by
Channel
|
|
Three Months Ended
|
|
Nine Months
Ended
|
|
(unaudited)
|
|
November 2,
2024
|
|
October 28,
2023
|
|
November 2,
2024
|
|
October 28,
2023
|
|
Stores
originated
|
|
81.5 %
|
|
83.2 %
|
|
81.8 %
|
|
82.9 %
|
|
Digitally
originated
|
|
18.5
|
|
16.8
|
|
18.2
|
|
17.1
|
|
Total
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
Sales by
Fulfillment Channel
|
|
Three Months Ended
|
|
Nine Months
Ended
|
|
(unaudited)
|
|
November 2,
2024
|
|
October 28,
2023
|
|
November 2,
2024
|
|
October 28,
2023
|
|
Stores
|
|
97.7 %
|
|
97.7 %
|
|
97.8 %
|
|
97.5 %
|
|
Other
|
|
2.3
|
|
2.3
|
|
2.2
|
|
2.5
|
|
Total
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
Note: Sales fulfilled
by stores include in-store purchases and digitally originated sales
fulfilled by shipping merchandise from stores to guests, Order
Pickup, Drive Up, and Shipt.
|
|
Target Circle Card
Penetration
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
(unaudited)
|
|
November 2,
2024
|
|
October 28,
2023
|
|
November 2,
2024
|
|
October 28,
2023
|
|
Total Target Circle
Card Penetration
|
|
17.7 %
|
|
18.3 %
|
|
17.8 %
|
|
18.6 %
|
|
Number of Stores and
Retail Square Feet
|
|
Number of
Stores
|
|
Retail Square Feet
(a)
|
|
(unaudited)
|
|
November 2,
2024
|
|
February 3,
2024
|
|
October 28,
2023
|
|
November 2,
2024
|
|
February 3,
2024
|
|
October 28,
2023
|
|
170,000 or more sq.
ft.
|
|
273
|
|
273
|
|
273
|
|
48,824
|
|
48,824
|
|
48,824
|
|
50,000 to 169,999 sq.
ft.
|
|
1,559
|
|
1,542
|
|
1,542
|
|
195,050
|
|
192,908
|
|
192,877
|
|
49,999 or less sq.
ft.
|
|
146
|
|
141
|
|
141
|
|
4,404
|
|
4,207
|
|
4,207
|
|
Total
|
|
1,978
|
|
1,956
|
|
1,956
|
|
248,278
|
|
245,939
|
|
245,908
|
|
|
|
(a)
|
In thousands; reflects
total square feet less office, supply chain facilities, and vacant
space.
|
TARGET CORPORATION
Reconciliation of Non-GAAP Financial Measures
To provide additional transparency, we disclose non-GAAP
adjusted diluted earnings per share (Adjusted EPS). When
applicable, this metric excludes certain discretely managed items.
However, there are no adjustments in any period presented. We
believe this information is useful in providing period-to-period
comparisons of the results of our operations. This measure is not
in accordance with, or an alternative to, U.S. GAAP. The most
comparable GAAP measure is diluted earnings per share. Adjusted EPS
should not be considered in isolation or as a substitution for
analysis of our results as reported in accordance with GAAP. Other
companies may calculate Adjusted EPS differently, limiting the
usefulness of the measure for comparisons with other companies.
|
Reconciliation of
Non-GAAP
Adjusted
EPS
|
|
Three Months
Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
November 2,
2024
|
|
October 28,
2023
|
|
Change
|
|
November 2,
2024
|
|
October 28,
2023
|
|
Change
|
|
GAAP and adjusted
diluted earnings per share
|
|
$
1.85
|
|
$
2.10
|
|
(11.9) %
|
|
$
6.45
|
|
$
5.96
|
|
8.3 %
|
|
Reconciliation of
Non-GAAP
Adjusted EPS
Guidance
|
Guidance
|
|
(per share)
(unaudited)
|
Q4 2024
|
|
Full Year
2024
|
|
GAAP diluted earnings
per share guidance
|
$1.85 -
$2.45
|
|
$8.30 -
$8.90
|
|
Estimated
adjustments
|
|
|
|
|
Other
(a)
|
$
—
|
|
$
—
|
|
Adjusted diluted
earnings per share guidance
|
$1.85 -
$2.45
|
|
$8.30 -
$8.90
|
|
|
|
(a)
|
Fourth quarter and
full-year 2024 GAAP EPS may include the impact of certain discrete
items, which will be excluded in calculating Adjusted EPS. The
guidance does not currently reflect any such discrete items. In the
past, these items have included losses on the early retirement of
debt and certain other items that are discretely
managed.
|
Earnings before interest expense and income taxes (EBIT) and
earnings before interest expense, income taxes, depreciation and
amortization (EBITDA) are non-GAAP financial measures. We believe
these measures provide meaningful information about our operational
efficiency compared with our competitors by excluding the impact of
differences in tax jurisdictions and structures, debt levels, and,
for EBITDA, capital investment. These measures are not in
accordance with, or an alternative to, GAAP. The most comparable
GAAP measure is net earnings. EBIT and EBITDA should not be
considered in isolation or as a substitution for analysis of our
results as reported in accordance with GAAP. Other companies may
calculate EBIT and EBITDA differently, limiting the usefulness of
the measures for comparisons with other companies.
|
EBIT and
EBITDA
|
|
Three Months Ended
|
|
|
|
Nine Months
Ended
|
|
|
|
(dollars in
millions) (unaudited)
|
|
November 2,
2024
|
|
October 28,
2023
|
|
Change
|
|
November 2,
2024
|
|
October 28,
2023
|
|
Change
|
|
Net earnings
|
|
$
854
|
|
$
971
|
|
(12.1) %
|
|
$
2,988
|
|
$
2,756
|
|
8.4 %
|
|
+ Provision for
income taxes
|
|
237
|
|
264
|
|
(9.9)
|
|
867
|
|
755
|
|
14.9
|
|
+ Net interest
expense
|
|
105
|
|
107
|
|
(1.5)
|
|
321
|
|
395
|
|
(18.7)
|
|
EBIT
|
|
$
1,196
|
|
$
1,342
|
|
(10.8) %
|
|
$
4,176
|
|
$
3,906
|
|
6.9 %
|
|
+ Total
depreciation and amortization (a)
|
|
754
|
|
722
|
|
4.2
|
|
2,215
|
|
2,072
|
|
6.8
|
|
EBITDA
|
|
$
1,950
|
|
$
2,064
|
|
(5.5) %
|
|
$
6,391
|
|
$
5,978
|
|
6.9 %
|
|
|
|
(a)
|
Represents total
depreciation and amortization, including amounts classified within
Depreciation and Amortization and within Cost of Sales.
|
We have also disclosed after-tax ROIC, which is a ratio based on
GAAP information, with the exception of the add-back of operating
lease interest to operating income. We believe this metric is
useful in assessing the effectiveness of our capital allocation
over time. Other companies may calculate ROIC differently, limiting
the usefulness of the measure for comparisons with other
companies.
|
After-Tax Return on
Invested Capital
|
|
|
|
(dollars in
millions) (unaudited)
|
|
|
|
|
|
|
Trailing Twelve
Months
|
|
|
|
Numerator
|
|
November 2, 2024
(a)
|
|
October 28,
2023
|
|
|
|
Operating
income
|
|
$
5,964
|
|
$
5,001
|
|
|
|
+ Net other
income
|
|
105
|
|
79
|
|
|
|
EBIT
|
|
6,069
|
|
5,080
|
|
|
|
+ Operating lease
interest (b)
|
|
157
|
|
106
|
|
|
|
- Income
taxes (c)
|
|
1,403
|
|
1,050
|
|
|
|
Net operating profit
after taxes
|
|
$
4,823
|
|
$
4,136
|
|
|
|
Denominator
|
|
November 2,
2024
|
|
October 28,
2023
|
|
October 29,
2022
|
|
Current portion of
long-term debt and other borrowings
|
|
$
1,635
|
|
$
1,112
|
|
$
2,207
|
|
+ Noncurrent
portion of long-term debt
|
|
14,346
|
|
14,883
|
|
14,237
|
|
+ Shareholders'
investment
|
|
14,489
|
|
12,514
|
|
11,019
|
|
+ Operating lease
liabilities (d)
|
|
3,765
|
|
3,351
|
|
2,879
|
|
- Cash
and cash equivalents
|
|
3,433
|
|
1,910
|
|
954
|
|
Invested
capital
|
|
$
30,802
|
|
$
29,950
|
|
$
29,388
|
|
Average invested
capital (e)
|
|
$
30,376
|
|
$
29,670
|
|
|
|
|
After-tax return on
invested capital
|
|
15.9 %
|
|
13.9 %
|
|
|
|
|
|
(a)
|
The trailing twelve
months ended November 2, 2024, consisted of 53 weeks compared
with 52 weeks in the prior-year period.
|
|
(b)
|
Represents the add-back
to operating income driven by the hypothetical interest expense we
would incur if the property under our operating leases were owned
or accounted for as finance leases. Calculated using the discount
rate for each lease and recorded as a component of rent expense
within Operating Income. Operating lease interest is added back to
Operating Income in the ROIC calculation to control for differences
in capital structure between us and our competitors.
|
|
(c)
|
Calculated using the
effective tax rates, which were 22.5 percent and 20.3 percent for
the trailing twelve months ended November 2, 2024, and
October 28, 2023, respectively. For the twelve months ended
November 2, 2024, and October 28, 2023, includes tax
effect of $1.4 billion and $1.0 billion, respectively, related
to EBIT, and $35 million and $22 million, respectively,
related to operating lease interest.
|
|
(d)
|
Total short-term and
long-term operating lease liabilities included within Accrued and
Other Current Liabilities and Noncurrent Operating Lease
Liabilities, respectively.
|
|
(e)
|
Average based on the
invested capital at the end of the current period and the invested
capital at the end of the comparable prior period.
|
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SOURCE Target Corporation
