How effective were Target's cost controls in Q2 2024?

Target's cost controls in Q2 2024 were relatively effective as evidenced by the improvements in both gross and operating margins. The company's gross margin rate improved to 28.87% compared to 26.3% in the same quarter last year, indicating better cost management and merchandising strategies. Similarly, the operating margin rate improved to 4.85% versus 4.2% a year ago. These improvements reflect Target's ability to manage its cost of sales effectively, which has partially offset the impact of lower sales volume due to declines in some discretionary categories. Overall, Target's cost controls in Q2 2024 were effective in maintaining profitability despite the softness in consumer discretionary spending.