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$TGT (+3.36%) | Target Q3 Earnings Highlights:

🔹 Adj EPS: $1.85 (Est. $2.30) 🔴; DOWN -11.9% YoY

🔹 Revenue: $25.23B (Est. $25.74B) 🔴; UP +0.9% YoY

🔹 Comparable Sales: +0.3% (Est. +1.48%) 🔴

🔹 Gross Margin: 27.2% (Est. 28.7%) 🔴

🔹 Inventory: $15.17B; UP +2.9% YoY

CUTS GUIDANCE:

🔹 FY24 Adj EPS: $8.30-$8.90 (Prior: $9-$9.70, Est. $9.57) 🔴

🔹 Q4 Adj EPS: $1.85-$2.45 (Est. $2.65) 🔴

🔹 Q4 Comparable Sales: Expected to remain Flat

OTHER Q3 METRICS:

🔹 Operating Income: $1.17B (Est. $1.46B) 🔴; DOWN -11% YoY

🔹 EBITDA: $1.95B (Est. $2.16B) 🔴; DOWN -5.5% YoY

🔹 Operating Margin: 4.6% (Est. 5.63%) 🔴

🔹 Customer Transactions: +2.4% YoY

🔹 Average Transaction Amount: -2% (Est. -1.08%) 🔴

🔹 Digital Sales Share of Total Sales: 18.5%

🔹 Stores-Originated Sales Share: 81.5% (Est. 82.7%) 🔴

🔹 Total Stores: 1,978 (Est. 1,972) 🟢

Q3 SSS:

🔸 Digital Comp. Sales: +10.8% (Est. +4.69%) 🟢

🔸 Store Comp. Sales: -1.9% (Est. +1.49%) 🔴

Operational Highlights:

🔸 Beauty Comparable Sales: UP +6%.

🔸 Food & Beverage, Essentials: Grew in low-single digits YoY.

🔸 Digital Sales: Driven by nearly 20% growth in same-day delivery via Target Circle 360™ and double-digit growth in Drive Up services.

🔸 Gross Margin: Declined -20 bps YoY due to higher digital fulfillment costs, supply chain costs, and inventory buildup.

🔸 SG&A Expense Rate: Increased to 21.4% from 20.9% YoY, driven by higher labor costs and liability expenses.

Commentary:

🔸 CEO Brian Cornell: "Strong traffic growth of +2.4% and robust digital performance highlight Target’s resilient fundamentals despite challenges impacting our bottom-line performance. We remain focused on delivering value for the holiday season and long-term financial goals."

Strategic Focus:

🔸 Emphasis on driving digital growth and improving efficiencies in fulfillment and inventory management.

🔸 Leverage beauty, food, and essentials categories for sustained growth amid cost pressures.