What caused Target's revenue cost changes in Q3 2024?

Target's revenue and cost changes in Q3 2024 were primarily driven by shifts in product mix and operational adjustments.

1. **Revenue Change**: Target's total revenue increased by 3% year-over-year, reaching $25.45 billion in Q3 2024, up from $24.77 billion in the same period the previous year. This growth was supported by strong demand across all segments and channels, with the Americas and Europe leading regional performance, and the APMA region experiencing the fastest growth.
2. **Cost of Sales Change**: The cost of sales decreased slightly to $17.8 billion in Q3 2024, down from $18.9 billion in Q3 2023. This reduction was due to a shift in mix from Direct-to-Consumer (D2C) to Business-to-Business (B2B) compared to the previous year.
3. **Gross Margin Change**: The gross margin for Q3 2024 was 29.48%, compared to 27.77% in Q3 2023. This increase of 1.71 percentage points was influenced by the company's ongoing capacity expansion and a shift in channel mix, which together accounted for about 120 basis points of the decline compared to the prior year third quarter. Despite these changes, Target's gross profit margin remained stable at 0.06 percentage points, indicating effective cost management during the period.

In summary, Target's revenue growth in Q3 2024 was driven by robust demand across all segments and channels, while the cost of sales decrease and gross margin increase were primarily due to a shift in product mix from D2C to B2B and effective cost management strategies.