"Our Q2 comparable sales grew 2%, at the very top end of our guidance range."
— Brian Cornell
03Detailed Report
TGT
Target Corporation
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 27, 2026
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Executive Summary
In Q2 2024, Target Corporation (TGT) reported revenue of $25.45 billion, achieving a 2% increase in comparable sales primarily driven by improved traffic across both store and digital channels. The company's net income rose to $1.19 billion, resulting in diluted earnings per share of $2.57, a remarkable growth of over 42% year-over-year (YoY). Target's strong performance was bolstered by strategic price reductions on key items and enhancements to their digital platforms, including a successful relaunch of its Target Circle loyalty program, now boasting over 100 million members. Management maintained a cautious outlook while committing to continued investment in their operational capacity and guest services, indicating confidence in their growth strategies as they navigate consumer trends focused on value and affordability.
Market Metrics
- Comparable Sales Growth: 2% (driven entirely by traffic)
- Target Circle Members: Over 100 million; added 2 million in Q2 2024.
Management Insights:
"We met our goal of returning to growth... with our Q2 comparable sales growing 2%, at the very top end of our guidance range" — Brian Cornell, CEO.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
25.45B
-20.26%
3.75%
Gross Profit
7.65B
-3.05%
18.39%
Operating Income
1.64B
-12.33%
26.16%
Net Income
1.19B
-13.75%
26.54%
EPS
2.58
-13.42%
26.47%
Key Financial Ratios
Gross Profit Margin
Fair
30.10%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
6.42%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Fair
4.68%
Net profit margin is moderate, room for improvement in cost management
Return on Assets
Weak
2.13%
Return on assets suggests inefficient capital allocation
Return on Equity
Fair
8.26%
Return on equity is acceptable but below top-tier companies
Current Ratio
Concern
0.90
Current ratio below safe levels, potential liquidity risk
Debt to Equity
High Risk
1.30
Debt-to-equity indicates high leverage and elevated financial risk
P/E Ratio
Value
13.50x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Premium
4.46x
Trading at premium to book value, reflects strong intangibles or growth
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