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Operating Income Growth: 6.7% growth through the first three quarters of the year.
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Traffic Growth: Increased by 2.4% in the third quarter.
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Comparable Sales: Increased by 0.3% in the third quarter.
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Digital Sales Growth: Nearly 11% growth in the third quarter.
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Same-Day Delivery Growth: Nearly 20% growth powered by Target Circle 360.
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Drive-Up Sales: Accounted for more than $2 billion in Q3 sales.
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Beauty Category Sales: Comparable sales increased by more than 6% in the quarter.
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Apparel Sales: Slight decline, with relative performance strong compared to the market.
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Operating Margin Rate: 4.6%, down about 60 basis points from a year ago.
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Gross Margin Rate: About 20 basis points lower than last year.
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SG&A Expense Rate: Increased by about 50 basis points in the third quarter.
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EPS: GAAP and adjusted EPS of $1.85 compared with $2.10 a year ago.
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Year-to-Date EPS Growth: Increased by 8.3% compared with last year.
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Inventory Levels: Third-quarter ending inventory about 3% higher than a year ago.
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New Store Openings: 23 new stores secured, with 13 opened in the past quarter.
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After-Tax ROIC: 15.9%, 2 percentage points higher than a year ago.
Release Date: November 20, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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Target Corp (NYSE:TGT) reported a healthy growth in traffic, with a 2.4% increase, equating to over 10 million additional transactions compared to last year.
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Digital sales grew nearly 11% in the third quarter, with same-day delivery powered by Target Circle 360 increasing by almost 20%.
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The beauty category saw a strong performance with a comparable sales growth of more than 6%, driven by both core beauty business and Ulta Beauty at Target offerings.
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Target Corp (NYSE:TGT) successfully navigated supply chain challenges, including port strikes, by rerouting shipments to ensure inventory readiness for the holiday season.
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The company enrolled nearly 3 million new Target Circle members in the quarter, enhancing customer engagement and loyalty.
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Target Corp (NYSE:TGT) faced a decline in average ticket size by 2%, primarily due to cautious consumer spending in discretionary categories.
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Operating margin rate decreased by about 60 basis points from the previous year, impacted by softer-than-expected sales in high-margin categories and cost pressures.
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The company experienced higher-than-expected general liability and healthcare costs, contributing to an increase in SG&A expenses.
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Discretionary categories such as home and hardlines continued to show softness, with consumers spending cautiously in these areas.
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Target Corp (NYSE:TGT) had to manage elevated inventory levels earlier than usual due to receipt timing changes and softer-than-expected sales, leading to higher supply chain costs.
