Executive Summary
Target Corporation reported a solid Q4 2024, with revenue of $31.395 billion, up 26.0% year over year, and a cadence of margin stability against a backdrop of ongoing promotional activity and mix shifts. The company generated $3.466 billion of cash flow from operations and $2.261 billion of free cash flow, supporting a robust cash generation profile even as total debt remained elevated. Net income rose to $876 million and diluted EPS reached $1.89–$1.90, marking meaningful profitability in a high-volume retail environment. On the balance sheet, total assets stood at $53.335 billion and total liabilities at $42.103 billion, with net debt of approximately $16.8 billion and a current ratio of about 0.92, signaling liquidity dynamics typical of a large, inventory-intense retailer. The Q4 results underline Target’s ability to sustain synthetic earnings growth through mix optimization and cost discipline, while leveraging its omnichannel footprint to drive scale. However, leverage remains a key consideration for investors, given the sizable debt load and working capital dynamics that accompanied the quarter. The absence of formal forward guidance in the provided data means the outlook should be interpreted in the context of ongoing cost-control initiatives, inventory productivity, and competitive intensity in the US specialty retail space.
Key Performance Indicators
Key Insights
Revenue: $31.395B (Q4 2024) vs. prior year up 26.02% YoY; QoQ growth flat at 0.00% per data.
Gross Profit: $6.834B; gross margin ≈ 21.77% (0.2177). YoY gross profit growth ≈ 15.5%.
Operating Income: $1.17B; operating margin ≈ 3.73% (0.0373). YoY operating income up ~15.6%.
Net Income: $876M; net margin ≈ 2.79% (0.0279). YoY net income up ~17.1%.
EPS (Diluted): $1.89–$1.90; YoY EPS up ~18.6%.
Cash Flow: CFO $3.466B; capex $1.205B; Free Cash Flow ≈ $2.261B. Net change in cash $1.2...
Financial Highlights
Revenue: $31.395B (Q4 2024) vs. prior year up 26.02% YoY; QoQ growth flat at 0.00% per data.
Gross Profit: $6.834B; gross margin ≈ 21.77% (0.2177). YoY gross profit growth ≈ 15.5%.
Operating Income: $1.17B; operating margin ≈ 3.73% (0.0373). YoY operating income up ~15.6%.
Net Income: $876M; net margin ≈ 2.79% (0.0279). YoY net income up ~17.1%.
EPS (Diluted): $1.89–$1.90; YoY EPS up ~18.6%.
Cash Flow: CFO $3.466B; capex $1.205B; Free Cash Flow ≈ $2.261B. Net change in cash $1.275B; ending cash $2.229B.
Balance Sheet: Total assets $53.335B; total liabilities $42.103B; total stockholders’ equity $11.232B. Long-term debt $18.647B; total debt $19.073B; cash and equivalents $2.229B; inventories $13.499B; current liabilities $19.5B; current assets $17.846B. Liquidity metrics imply modest near-term cushion (current ratio ~0.92; quick ratio ~0.22).
Leverage: Net debt to EBITDA and debt maturity profile require attention given a sizable debt stack while cash flow generation supports deleveraging potential over time.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
31.40B |
26.02% |
0.00% |
| Gross Profit |
6.83B |
15.52% |
0.00% |
| Operating Income |
1.17B |
15.59% |
0.00% |
| Net Income |
876.00M |
17.09% |
0.00% |
| EPS |
1.90 |
18.63% |
0.00% |
Management Commentary
Transcript highlights not provided in the data set. Earnings call quotes and management commentary could not be extracted since the earnings transcript array is empty. Where available, quotes would be used to illustrate strategy, execution, and market conditions; in their absence, the analysis relies on disclosed financials and qualitative signals inferred from reported results.
Forward Guidance
No formal forward guidance is present in the provided data. Based on the reported metrics for Q4 2024 and typical industry dynamics, the expected trajectory would hinge on (1) continued omnichannel growth and efficient inventory management, (2) cost discipline to protect operating margin amid competitive promo activity, and (3) deleveraging progress to rebalance the balance sheet. Investors should monitor: pace of same-store sales/incremental digital penetration, gross margin maintenance amid promotions, inventory levels versus demand, and debt repayment progression. If management signals incremental cost takedowns or capex discipline, upside could stem from higher free cash flow conversion; downside would arise from sustained promo intensity that compresses margins or slower top-line growth.