What is the revenue and EPS growth rate for Target year over year?

What guidance did Target's management provide for the next earnings period?

What is Target's latest dividend and current dividend yield?

What is the market's earnings forecast for Target next quarter?

What were the key takeaways from Target's earnings call?

What factors drove the changes in Target's revenue and profit?

What is Target's gross profit margin?

What were the key takeaways from Target’s earnings call?

- **Strategic Reinvestment**: 2026 CapEx increases 25% to $5B, focusing on new stores (+$1B), remodels, and tech. Q3 same-day delivery grew 35%, digital GMV up 50%.
- **Operational Progress**: In-stock rate improved 150bps in key items, but Q3 sales down 2.7% due to soft discretionary spending. 20,000 new holiday items aim to drive differentiation.
- **Financial Discipline**: Adjusted EPS $1.78 (down 4% YoY), with 2025 EPS range narrowed to $7-8. Inventory shrink improvements to add 80-90bps to GM.
- **Holiday Focus**: Thanksgiving meal deals under $20, 20,000 new items, and Gen AI-powered gift finder to enhance holiday shopping experience.

**【CEO Summary Section】**
- Brian Cornell concluded his tenure, highlighting Target's revenue growth from $30B to over $60B and EPS doubling since 2014. He emphasized Michael Fiddelke's leadership in driving the next phase of growth.
- Michael Fiddelke outlined three priorities: design-led merchandising authority, elevated guest experience, and technology-driven efficiency. He announced a 25% increase in 2026 CapEx to $5B, focusing on new stores, remodels, and tech investments.

**【CFO Financial Commentary】**
- Q3 net sales declined 1.5% YoY, with digital sales growing 2.4% (35% growth in same-day delivery). Adjusted EPS was $1.78, down 4% YoY due to top-line pressure.
- Gross margin rate of 28.2% reflected 100bps pressure from higher markdowns, offset by 70bps from lower shrink. SG&A rate was 21.9%, stable ex-transformation costs.
- 2026 CapEx planned at $5B (up $1B), supporting store expansion, remodels, and digital fulfillment. Inventory shrink improvements expected to add 80-90bps to 2025 GM.

**【Q&A Key Highlights】**
- **Investment Strategy**: Michael Fiddelke emphasized returns-driven CapEx, with new stores outperforming expectations and remodels delivering sales lifts. Tech investments in AI tools (e.g., Target Trend Brain) accelerate product development and personalization.
- **In-Stock Progress**: Q3 saw 150bps improvement in top 5,000 items (30% of sales), but guests remain cautious amid macro uncertainty. Thanksgiving meal deals and 20,000 new holiday items aim to drive engagement.
- **Holiday Outlook**: Q4 comp sales expected to decline low single digits, with volatility in discretionary categories. Gross margin rate stable, but EPS range narrowed to $7-8 due to macro risks.
- **Loyalty Program**: Target Circle 360 growth fueled same-day delivery, but card penetration lags. Plans to better align Circle data with card onboarding to improve engagement.


Target Corporation (TGT) Q3 2026 Earnings Call Transcript

- **CEO Transition**: Michael Fiddelke set to lead with a focus on style, design, and tech-driven agility.
- **Q2 Progress**: 2% sales improvement vs. Q1, digital +4.3%, and 5% Hardlines comp growth.
- **Tariff Resilience**: Mitigated P&L impact through sourcing flexibility, with $7-9 EPS guidance maintained.
- **Growth Path**: Back-to-school momentum, AI investments, and store remodels to drive long-term expansion.

**【CEO Succession Announcement】**
- Brian Cornell announced Michael Fiddelke as CEO, effective FY2026, following a rigorous succession planning process.
- Michael's 20-year career at Target provides deep institutional knowledge and strategic vision for growth.
- Key focus areas: reestablishing merchandising authority, elevating guest experience, and leveraging technology for speed.

**【Strategic Priorities】**
- **Merchandising Authority**: Transforming Hardlines into FUN 101 with 5% Q2 comp growth, driven by trading cards (+70% YTD) and Nintendo Switch 2 success.
- **Guest Experience**: Improving on-shelf availability and store consistency, with Q2 metrics at their best in years.
- **Technology Integration**: Deploying 10,000+ AI licenses to streamline operations and free up team capacity for innovation.

**【Q2 Financial Performance】**
- **Revenue**: Net sales down 0.9% YoY, but 2% improvement from Q1, with digital sales +4.3%.
- **Gross Margin**: 1% YoY decline due to inventory adjustments and tariffs, partially offset by 130bps shrink improvement.
- **Expenses**: SG&A flat YoY, reflecting strong cost control.
- **EPS**: GAAP EPS $2.05 (-20.6% YoY) due to one-time tariff and inventory costs, with guidance maintained at $7-9 Non-GAAP.

**【Q&A Highlights】**
- **Tariff Mitigation**: Team success in limiting pricing impact, with 80bps shrink improvement expected by FY2026.
- **Growth Catalysts**: Back-to-school strength (+25% same-day delivery), Champion collaboration, and Halloween/Holiday newness.
- **Internal Change**: Redesigning processes to reduce silos, with increased in-person collaboration and technology adoption.
- **Capital Allocation**: $4B+ CapEx for stores, supply chain, and tech; dividend growth (+2% Q3) prioritized over share buybacks.


Target Corporation (TGT) Q2 2025 Earnings Call Transcript

- **Digital Growth Star**: Same Day Delivery up 36% y/y, driving 5% digital sales growth.
- **Tariff Resilience**: Offset >90% of tariffs via sourcing shifts, no markup on 100+ retailers via Shipt.
- **Profit Headwinds**: Q1 adj EPS down 35% to $1.30, guided $7-9 for 2025 (includes $0.30/tariff risk buffer).
- **Execution Priority**: 2025 focus on 'speed + consistency' with 20+ new stores, 4% remodel comp lifts.


**【CEO Opening Remarks】**
- Q1 revenue declined 2.8% YoY due to traffic and ticket declines, but digital sales grew 5%, driven by 36% y/y growth in Same Day Delivery.
- Launched Enterprise Acceleration Office to improve operational agility, led by COO Michael Fiddelke.
- Tariff mitigation efforts offset >90% of incremental costs through sourcing diversification (e.g., U.S. production share rising from 40% to 60%), assortment shifts (e.g., $1 BullsEye items), and last-resort price adjustments.
- Kate Spade collaboration achieved strongest designer partnership sales in over a decade, highlighting Target's style authority.

**【CFO Financial Highlights】**
- Q1 GAAP EPS: $2.27 (incl. $0.97 litigation gain); Adjusted EPS: $1.30 vs. $2.03 prior year.
- Gross margin: 28.2% (-60bps YoY), with 120bps improvement from lower shrink offset by 80bps digital fulfillment pressure.
- SG&A: 19.3% (170bps lower YoY due to litigation gains), with underlying rate +70bps from sales deleverage.
- Full year 2025 guidance: Adjusted EPS $7-9 (wide range reflects tariff/elasticity uncertainty), capex ~$4B-$5B, dividend +20%+.

**【Q&A Key Takeaways】**
- **Tariff Mitigation**: 30%+ U.S. production share, $1 BullsEye items, no markup on Shipt Marketplace deliveries.
- **Sales Outlook**: Q2-Q4 comp sales expected to decline low single-digits, with inventory adjustments peaking Q2.
- **Price Positioning**: 90%+ price parity vs. peers, but emphasize 'value beyond price' via convenience (e.g., 70% orders fulfilled within 1 day).
- **2026 Vision**: Target Circle 360 GMV >$5B, 20%+ Target Plus GMV growth, 20+ new stores/year.


Target (TGT) Q1 2025 Earnings Call Transcript

- **$15B Growth Ambition**: Targeting $15+ billion in revenue growth over five years, driven by discretionary categories with 2024 guest trips up 350 million YoY. 
- **Digital Dominance**: Digital sales at $20B+ with 9% Q4 growth, same-day services growing >20% and brown box shipping times improving 11%. 
- **Profitability Boost**: Roundel ($2B in 2024) and Target Plus ($1B GMV) set to double in five years, supporting margin expansion. 
- **Tariff Resilience**: Sourcing diversification to 30% China in owned brands (target 25% by 2026) and western hemisphere production for faster replenishment. 
- **Loyalty Leap**: Target Circle 360 memberships quadrupled in 2024, with new Marriott partnership enhancing travel convenience.

**【CEO Summary Section】**
- Target aims to drive over $15 billion in revenue growth over five years, focusing on discretionary categories like home, apparel, and hard lines. 
- 2024 saw 350 million more guest trips compared to 2019, with Q4 digital sales growing nearly 9% and $20 billion in digital revenue. 
- Investments in stores, supply chain, and technology ($4-5 billion annually) will support growth and reliability. 

**【COO Operational Insights】**
- 2024 saw 23 new stores opened, with plans for 20 more in 2025, plus remodels to enhance in-store experience. 
- Digital fulfillment (drive-up, same-day delivery) grew 20%+ in 2024, with brown box shipping times improving 11%. 
- Inventory management improvements reduced out-of-stocks across all quarters, with AI-powered systems now handling 40% of assortment. 

**【CFO Financial Outlook】**
- 2025 net sales expected to grow ~1%, with adjusted EPS of $8.80-$9.80. 
- Operating margin expansion driven by Roundel ($2 billion in 2024, targeting $4 billion by 2030) and Target Plus (GMV to $5 billion by 2030). 
- Tariff risks managed through diversified sourcing (China share down to 30% in owned brands, targeting 25% by end-2026). 

**【Q&A Key Takeaways】**
- **Volatility Mitigation**: Shorter lead times (20% reduction in apparel), agile Target Plus expansion, and 2025 capex focused on high ROI projects. 
- **Digital Profitability**: Core digital business profitable (excluding Roundel/Target Plus), with 2024 digital GMV up 35%. 
- **Tariff Strategy**: Diversified sourcing to western hemisphere (Guatemala, Honduras) for faster replenishment and lower risk. 
- **Loyalty Growth**: Target Circle 360 memberships quadrupled in 2024, with Marriott partnership launching Q2 2025.

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