US' Target Corporation posts $25.2 bn sales in Q3 FY24, up 0.9% YoY

The other revenue of the company rose by 11.5 per cent YoY to $440 million from $394 million, and total revenue increased by 1.1 per cent to $25,668 million from $25,398 million in Q3 2023. Cost of sales went up by 1.2 per cent to $18,375 million from $18,149 million in the same period a year prior, Target Corporation said in a press statement.

Selling, general, and administrative (SG&A) expenses increased by 3.2 per cent to $5,486 million from $5,316 million in Q3 2023. Depreciation and amortisation expenses rose by 3.6 per cent YoY to $639 million. Operating income decreased by 11.2 per cent YoY to $1,168 million. Net interest expense slightly decreased by 1.5 per cent YoY from $107 million in the same period in 2023.

Net earnings decreased by 12.1 per cent YoY to $854 million from $971 million. Basic earnings per share decreased by 11.8 per cent YoY to $1.86 from $2.10, and diluted earnings per share decreased by 11.9 per cent YoY to $1.85 from $2.10.

The third quarter comparable sales increased 0.3 per cent YoY, driven by strong traffic and digital performance. Guest traffic grew 2.4 per cent YoY over the prior year. Digital comparable sales grew 10.8 per cent YoY reflecting nearly 20 per cent YoY growth in same-day delivery powered by Target Circle 360- and double-digit growth in drive up, stated the statement.

“I am proud of our team’s efforts to navigate through a volatile operating environment during the third quarter. We saw several strengths across the business, including a 2.4 per cent increase in traffic, nearly per cent growth in the digital channel, and continued growth in beauty and frequency categories. At the same time, we encountered some unique challenges and cost pressures that impacted our bottom-line performance,” said Brian Cornell, chair and chief executive officer of Target Corporation. “Looking ahead, our team is energised and ready to deliver the unique combination of newness and value that holiday shoppers can only find at Target, and we remain confident in the underlying strength and fundamentals of our business, and our ability to deliver on our longer-term financial goals.”

Nine months financials for 2024

For the nine months (9M) period, the sales of the company reached $74,392 million, a slight increase of 0.1 per cent YoY from $74,336 million in 9M 2023. Other revenue rose by 8.8 per cent YoY to $1,259 million from $1,157 million. The total revenue of the company increased by 0.2 per cent YoY to $75,651 million from $75,493 million.

Cost of sales decreased by 1.3 per cent to $53,623 million from $54,333 million. SG&A expenses increased by 3.4 per cent YoY to $16,046 million from $15,525 million. Depreciation and amortisation expenses rose by 5.0 per cent to $1,883 million from $1,793 million. Operating income increased by 6.7 per cent YoY to $4,099 million from $3,842 million. Net interest expense decreased by 18.7 per cent to $321 million from $395 million.

Net earnings of the company in the 9M period increased by 8.4 per cent YoY to $2,988 million, basic earnings per share increased by 8.3 per cent YoY to $6.47 from $5.97, and diluted earnings per share (EPS) increased by 8.3 per cent to $6.45 from $5.96.

For the fourth quarter (Q4), Target expects flat comparable sales and GAAP and adjusted EPS of $1.85 to $2.45, translating to a full year expected GAAP and adjusted EPS range of $8.30 to $8.90.

Fibre2Fashion News Desk (SG)