Summary by Futu AI
Target Corporation reported Q3 2024 revenue of $25.7 billion, up 1.1% year-over-year, with comparable sales increasing 0.3%. Operating income declined 11.2% to $1.2 billion, while diluted earnings per share fell to $1.85 from $2.10 in the prior year. Digital sales showed strong momentum with a 10.8% increase, now representing 18.5% of total sales.The company's gross margin rate slightly decreased to 27.2% from 27.4%, impacted by higher digital fulfillment and supply chain costs, including expenses related to elevated inventory management. SG&A expenses increased to 21.4% of revenue compared to 20.9% last year, driven by higher team member compensation and general liability expenses.Target maintained its commitment to shareholder returns, paying quarterly dividends of $1.12 per share and deploying $509 million for share repurchases during the first nine months. The company ended the quarter with $3.4 billion in cash and cash equivalents, while inventory levels increased to $15.2 billion, reflecting seasonal holiday build-up and lower-than-expected sales in certain discretionary categories.
