MINNEAPOLIS, Nov. 15,
2023 /PRNewswire/ --
- The Company's third quarter operating income margin rate of
5.2 percent was 1.3 percentage points higher than last year, driven
by a higher gross margin rate.
- Third quarter GAAP and Adjusted EPS1 of
$2.10 was 36 percent higher than a
year ago and above the high end of the Company's guidance range,
reflecting disciplined inventory and expense management.
- Through the first three quarters of this year, Target has
generated more than $5.3 billion of
operating cash flow, compared with approximately $550 million in 2022.
- Third quarter comparable sales declined 4.9 percent, in line
with expectations.
- Declines in discretionary categories were partially offset
by continued growth in frequency categories, most notably in
Beauty.
- Same-day services grew more than 8 percent, led by more than
12 percent growth in Drive-Up.
- Inventory at the end of Q3 was 14 percent lower than last
year, reflecting a 19 percent reduction in discretionary category
inventory.
- To deliver newness and value for guests this holiday season,
Target will offer more than 10,000 new items for the holidays, with
thousands of must-have gifts under $25, and thousands of exclusive-to-Target items
across many categories.
For additional media materials, please
visit:
https://corporate.target.com/news-features/article/2023/11/q3-2023-earnings
Target Corporation (NYSE: TGT) today announced its third quarter
2023 financial results, which reflected stronger-than-expected
profit performance on sales consistent with expectations.
The Company reported third quarter GAAP and Adjusted earnings
per share1 (EPS) of $2.10,
up 36.3 percent from $1.54 in 2022.
The attached tables provide a reconciliation of non-GAAP to GAAP
measures. All earnings per share figures refer to diluted EPS.
1Adjusted EPS, a non-GAAP financial
measure, excludes the impact of certain discretely managed items.
See the tables of this release for additional information about the
items that have been excluded from Adjusted EPS.
|
Brian Cornell, chair and chief
executive of Target Corporation, said "In the third quarter, our
team continued to successfully navigate our business through a very
challenging external environment. While third quarter sales were
consistent with our expectations, earnings per share came in far
ahead of our forecast. This profit performance benefited from our
team's commitment to efficiency and disciplined inventory
management, and I'd like to thank them for their tireless efforts.
Looking ahead, we're continuing to make investments throughout our
business -- in our assortment, our team and the services we offer
-- to provide the newness, affordability and convenience our guests
want during the holiday season and beyond."
Guidance
For the fourth quarter, the Company expects comparable sales in
a wide range around a mid-single digit decline, and GAAP and
Adjusted EPS of $1.90 to $2.60.
Operating Results
Comparable sales declined 4.9 percent in the third quarter,
reflecting a comparable store sales decline of 4.6 percent and a
comparable digital sales decline of 6.0 percent. Total revenue of
$25.4 billion was 4.2 percent lower
than last year, reflecting a total sales decline of 4.3 percent and
a 0.6 percent decrease in other revenue. Third quarter operating
income of $1.3 billion was 28.9
percent higher than last year, driven by a higher gross margin
rate.
Third quarter operating income margin rate was 5.2 percent
in 2023, compared with 3.9 percent in 2022. Third quarter gross
margin rate was 27.4 percent, compared with 24.7 percent in 2022,
reflecting lower markdowns and other inventory-related costs, lower
freight costs, lower supply chain and digital fulfillment costs,
and favorable category mix. These benefits were partially offset by
higher inventory shrink. Third quarter SG&A expense rate was
20.9 percent in 2023, compared with 19.7 percent in 2022,
reflecting the de-leveraging impact of lower sales combined with
higher costs, including continued investments in pay and benefits
and inflationary pressures throughout our business, partially
offset by disciplined cost management.
Interest Expense and Taxes
The Company's third quarter 2023 net interest expense was
$107 million, compared with
$125 million last year, reflecting an
increase in interest income, partially offset by higher debt levels
and the impact of higher floating interest rates on interest rate
swaps.
Third quarter 2023 effective income tax rate was 21.3
percent, in line with the prior year rate of 21.6 percent.
Capital Deployment and Return on Invested Capital
The Company paid dividends of $507
million in the third quarter, compared with $497 million last year, reflecting a 1.9 percent
increase in the dividend per share.
The Company did not repurchase any stock in the third
quarter. As of the end of the quarter, the Company had
approximately $9.7 billion of
remaining capacity under the repurchase program approved by
Target's Board of Directors in August
2021.
For the trailing twelve months through third quarter 2023,
after-tax return on invested capital (ROIC) was 13.9 percent,
compared with 14.6 percent for the trailing twelve months through
third quarter 2022. The decrease in ROIC reflects faster growth in
average invested capital compared with after-tax returns. The
tables in this release provide additional information about the
Company's ROIC calculation.
Webcast Details
Target will webcast its third quarter earnings conference call
at 7:00 a.m. CT today. Investors and
the media are invited to listen to the meeting at
Corporate.Target.com/Investors (click on "Q3 2023 Target
Corporation Earnings Conference Call" under "Events &
Presentations"). A replay of the webcast will be provided when
available. The replay number is 1-800-391-9851.
Miscellaneous
Statements in this release regarding the Company's future
financial performance, including its fiscal 2023 fourth quarter
guidance, are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements
are subject to risks and uncertainties which could cause the
Company's results to differ materially. The most important risks
and uncertainties are described in Item 1A of the Company's Form
10-K for the fiscal year ended January 28,
2023. Forward-looking statements speak only as of the date
they are made, and the Company does not undertake any obligation to
update any forward-looking statement.
About Target
Minneapolis-based Target
Corporation (NYSE: TGT) serves guests at nearly 2,000 stores and at
Target.com, with the purpose of helping all families discover the
joy of everyday life. Since 1946, Target has given 5% of its profit
to communities, which today equals millions of dollars a week.
Additional company information can be found by visiting the
corporate website (corporate.target.com) and press center.
TARGET
CORPORATION
Consolidated
Statements of Operations
|
|
|
Three Months Ended
|
|
|
|
Nine Months
Ended
|
|
|
(millions, except per share data) (unaudited)
|
|
October 28,
2023
|
|
October 29,
2022
|
|
Change
|
|
October 28,
2023
|
|
October 29,
2022
|
|
Change
|
Sales
|
|
$
25,004
|
|
$
26,122
|
|
(4.3) %
|
|
$
74,336
|
|
$
76,605
|
|
(3.0) %
|
Other
revenue
|
|
394
|
|
396
|
|
(0.6)
|
|
1,157
|
|
1,120
|
|
3.3
|
Total
revenue
|
|
25,398
|
|
26,518
|
|
(4.2)
|
|
75,493
|
|
77,725
|
|
(2.9)
|
Cost of
sales
|
|
18,149
|
|
19,680
|
|
(7.8)
|
|
54,333
|
|
58,283
|
|
(6.8)
|
Selling, general and
administrative expenses
|
|
5,316
|
|
5,219
|
|
1.8
|
|
15,525
|
|
14,983
|
|
3.6
|
Depreciation and
amortization (exclusive of depreciation included in cost of
sales)
|
|
616
|
|
597
|
|
3.2
|
|
1,793
|
|
1,770
|
|
1.3
|
Operating
income
|
|
1,317
|
|
1,022
|
|
28.9
|
|
3,842
|
|
2,689
|
|
42.9
|
Net interest
expense
|
|
107
|
|
125
|
|
(14.1)
|
|
395
|
|
349
|
|
13.4
|
Net other
income
|
|
(25)
|
|
(12)
|
|
115.0
|
|
(64)
|
|
(35)
|
|
87.8
|
Earnings before income
taxes
|
|
1,235
|
|
909
|
|
35.9
|
|
3,511
|
|
2,375
|
|
47.9
|
Provision for income
taxes
|
|
264
|
|
197
|
|
34.2
|
|
755
|
|
471
|
|
60.6
|
Net earnings
|
|
$
971
|
|
$
712
|
|
36.3 %
|
|
$
2,756
|
|
$
1,904
|
|
44.7 %
|
Basic earnings per
share
|
|
$
2.10
|
|
$
1.55
|
|
35.9 %
|
|
$
5.97
|
|
$
4.11
|
|
45.4 %
|
Diluted earnings per
share
|
|
$
2.10
|
|
$
1.54
|
|
36.3 %
|
|
$
5.96
|
|
$
4.09
|
|
45.6 %
|
Weighted average common
shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
461.6
|
|
460.3
|
|
0.3 %
|
|
461.4
|
|
462.6
|
|
(0.3) %
|
Diluted
|
|
462.6
|
|
462.5
|
|
0.0 %
|
|
462.7
|
|
465.3
|
|
(0.6) %
|
Antidilutive
shares
|
|
3.0
|
|
1.3
|
|
|
|
2.6
|
|
1.1
|
|
|
Dividends declared per
share
|
|
$
1.10
|
|
$
1.08
|
|
1.9 %
|
|
$
3.28
|
|
$
3.06
|
|
7.2 %
|
TARGET
CORPORATION
Consolidated
Statements of Financial Position
|
(millions, except
footnotes) (unaudited)
|
|
October 28,
2023
|
|
January 28,
2023
|
|
October 29,
2022
|
Assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
1,910
|
|
$
2,229
|
|
$
954
|
Inventory
|
|
14,731
|
|
13,499
|
|
17,117
|
Other current
assets
|
|
1,958
|
|
2,118
|
|
2,322
|
Total current
assets
|
|
18,599
|
|
17,846
|
|
20,393
|
Property and
equipment
|
|
|
|
|
|
|
Land
|
|
6,520
|
|
6,231
|
|
6,214
|
Buildings and
improvements
|
|
36,627
|
|
34,746
|
|
34,279
|
Fixtures and
equipment
|
|
8,490
|
|
7,439
|
|
7,184
|
Computer hardware and
software
|
|
3,312
|
|
3,039
|
|
2,899
|
Construction-in-progress
|
|
2,000
|
|
2,688
|
|
2,358
|
Accumulated
depreciation
|
|
(23,781)
|
|
(22,631)
|
|
(22,013)
|
Property and
equipment, net
|
|
33,168
|
|
31,512
|
|
30,921
|
Operating lease
assets
|
|
3,086
|
|
2,657
|
|
2,596
|
Other noncurrent
assets
|
|
1,376
|
|
1,320
|
|
1,705
|
Total
assets
|
|
$
56,229
|
|
$
53,335
|
|
$
55,615
|
Liabilities and
shareholders' investment
|
|
|
|
|
|
|
Accounts
payable
|
|
$
14,291
|
|
$
13,487
|
|
$
15,438
|
Accrued and other
current liabilities
|
|
6,099
|
|
5,883
|
|
6,138
|
Current portion of
long-term debt and other borrowings
|
|
1,112
|
|
130
|
|
2,207
|
Total current
liabilities
|
|
21,502
|
|
19,500
|
|
23,783
|
Long-term debt and
other borrowings
|
|
14,883
|
|
16,009
|
|
14,237
|
Noncurrent operating
lease liabilities
|
|
3,031
|
|
2,638
|
|
2,590
|
Deferred income
taxes
|
|
2,447
|
|
2,196
|
|
2,240
|
Other noncurrent
liabilities
|
|
1,852
|
|
1,760
|
|
1,746
|
Total noncurrent
liabilities
|
|
22,213
|
|
22,603
|
|
20,813
|
Shareholders'
investment
|
|
|
|
|
|
|
Common
stock
|
|
38
|
|
38
|
|
38
|
Additional paid-in
capital
|
|
6,681
|
|
6,608
|
|
6,558
|
Retained
earnings
|
|
6,225
|
|
5,005
|
|
4,631
|
Accumulated other
comprehensive loss
|
|
(430)
|
|
(419)
|
|
(208)
|
Total shareholders'
investment
|
|
12,514
|
|
11,232
|
|
11,019
|
Total liabilities
and shareholders' investment
|
|
$
56,229
|
|
$
53,335
|
|
$
55,615
|
Common
Stock Authorized 6,000,000,000 shares, $0.0833 par value;
461,651,176, 460,346,947, and 460,297,654 shares issued and
outstanding as of October 28, 2023, January 28, 2023, and
October 29, 2022, respectively.
|
|
Preferred
Stock Authorized 5,000,000 shares, $0.01 par value; no
shares were issued or outstanding during any period
presented.
|
TARGET
CORPORATION
Consolidated
Statements of Cash Flows
|
|
|
Nine Months
Ended
|
(millions) (unaudited)
|
|
October 28,
2023
|
|
October 29,
2022
|
Operating
activities
|
|
|
|
|
Net earnings
|
|
$
2,756
|
|
$
1,904
|
Adjustments to
reconcile net earnings to cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
2,072
|
|
2,004
|
Share-based
compensation expense
|
|
176
|
|
177
|
Deferred income
taxes
|
|
252
|
|
548
|
Noncash losses /
(gains) and other, net
|
|
101
|
|
141
|
Changes in operating
accounts:
|
|
|
|
|
Inventory
|
|
(1,232)
|
|
(3,215)
|
Other
assets
|
|
(208)
|
|
(205)
|
Accounts
payable
|
|
887
|
|
(224)
|
Accrued and other
liabilities
|
|
528
|
|
(578)
|
Cash provided by
operating activities
|
|
5,332
|
|
552
|
Investing
activities
|
|
|
|
|
Expenditures for
property and equipment
|
|
(3,952)
|
|
(4,323)
|
Proceeds from disposal
of property and equipment
|
|
24
|
|
4
|
Other
investments
|
|
18
|
|
16
|
Cash required for
investing activities
|
|
(3,910)
|
|
(4,303)
|
Financing
activities
|
|
|
|
|
Change in commercial
paper, net
|
|
—
|
|
2,104
|
Additions to long-term
debt
|
|
—
|
|
991
|
Reductions of
long-term debt
|
|
(114)
|
|
(139)
|
Dividends
paid
|
|
(1,503)
|
|
(1,339)
|
Repurchase of
stock
|
|
—
|
|
(2,646)
|
Shares withheld for
taxes on share-based compensation
|
|
(124)
|
|
(179)
|
Stock option
exercises
|
|
—
|
|
2
|
Cash required for
financing activities
|
|
(1,741)
|
|
(1,206)
|
Net decrease in cash
and cash equivalents
|
|
(319)
|
|
(4,957)
|
Cash and cash
equivalents at beginning of period
|
|
2,229
|
|
5,911
|
Cash and cash
equivalents at end of period
|
|
$
1,910
|
|
$
954
|
TARGET
CORPORATION
Operating
Results
|
Rate
Analysis
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
(unaudited)
|
|
October 28,
2023
|
|
October 29,
2022
|
|
October 28,
2023
|
|
October 29,
2022
|
Gross margin
rate
|
|
27.4 %
|
|
24.7 %
|
|
26.9 %
|
|
23.9 %
|
SG&A expense
rate
|
|
20.9
|
|
19.7
|
|
20.6
|
|
19.3
|
Depreciation and
amortization expense rate (exclusive of depreciation included in
cost of sales)
|
|
2.4
|
|
2.3
|
|
2.4
|
|
2.3
|
Operating income margin
rate
|
|
5.2
|
|
3.9
|
|
5.1
|
|
3.5
|
|
Note: Gross margin rate
is calculated as gross margin (sales less cost of sales) divided by
sales. All other rates are calculated by dividing the applicable
amount by total revenue. Other revenue includes $165 million and
$508 million of profit-sharing income under our credit card program
agreement for the three and nine months ended October 28,
2023, respectively, and $184 million and $550 million for the three
and nine months ended October 29, 2022,
respectively.
|
Comparable
Sales
|
|
Three Months Ended
|
|
Nine Months
Ended
|
(unaudited)
|
|
October 28,
2023
|
|
October 29,
2022
|
|
October 28,
2023
|
|
October 29,
2022
|
Comparable sales
change
|
|
(4.9) %
|
|
2.7 %
|
|
(3.5) %
|
|
2.9 %
|
Drivers of change in
comparable sales
|
|
|
|
|
|
|
|
|
Number of transactions
(traffic)
|
|
(4.1)
|
|
1.4
|
|
(2.7)
|
|
2.6
|
Average transaction
amount
|
|
(0.8)
|
|
1.3
|
|
(0.8)
|
|
0.2
|
|
Comparable Sales by
Channel
|
|
Three Months Ended
|
|
Nine Months
Ended
|
(unaudited)
|
|
October 28,
2023
|
|
October 29,
2022
|
|
October 28,
2023
|
|
October 29,
2022
|
Stores originated
comparable sales change
|
|
(4.6) %
|
|
3.2 %
|
|
(2.8) %
|
|
2.6 %
|
Digitally originated
comparable sales change
|
|
(6.0)
|
|
0.3
|
|
(6.7)
|
|
4.1
|
|
|
Sales by
Channel
|
|
Three Months Ended
|
|
Nine Months
Ended
|
(unaudited)
|
|
October 28,
2023
|
|
October 29,
2022
|
|
October 28,
2023
|
|
October 29,
2022
|
Stores
originated
|
|
83.2 %
|
|
82.9 %
|
|
82.9 %
|
|
82.3 %
|
Digitally
originated
|
|
16.8
|
|
17.1
|
|
17.1
|
|
17.7
|
Total
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
Sales by
Fulfillment Channel
|
|
Three Months Ended
|
|
Nine Months
Ended
|
(unaudited)
|
|
October 28,
2023
|
|
October 29,
2022
|
|
October 28,
2023
|
|
October 29,
2022
|
Stores
|
|
97.7 %
|
|
96.8 %
|
|
97.5 %
|
|
96.7 %
|
Other
|
|
2.3
|
|
3.2
|
|
2.5
|
|
3.3
|
Total
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
Note: Sales fulfilled
by stores include in-store purchases and digitally originated sales
fulfilled by shipping merchandise from stores to guests, Order
Pickup, Drive Up, and Shipt.
|
RedCard
Penetration
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
(unaudited)
|
|
October 28,
2023
|
|
October 29,
2022
|
|
October 28,
2023
|
|
October 29,
2022
|
Total RedCard
Penetration
|
|
18.3 %
|
|
19.6 %
|
|
18.6 %
|
|
20.0 %
|
Number of Stores and
Retail Square Feet
|
|
Number of
Stores
|
|
Retail Square Feet
(a)
|
(unaudited)
|
|
October 28,
2023
|
|
January 28,
2023
|
|
October 29,
2022
|
|
October 28,
2023
|
|
January 28,
2023
|
|
October 29,
2022
|
170,000 or more sq.
ft.
|
|
273
|
|
274
|
|
274
|
|
48,824
|
|
48,985
|
|
48,985
|
50,000 to 169,999 sq.
ft.
|
|
1,542
|
|
1,527
|
|
1,522
|
|
192,877
|
|
191,241
|
|
190,739
|
49,999 or less sq.
ft.
|
|
141
|
|
147
|
|
145
|
|
4,207
|
|
4,358
|
|
4,305
|
Total
|
|
1,956
|
|
1,948
|
|
1,941
|
|
245,908
|
|
244,584
|
|
244,029
|
(a)
In thousands; reflects total square feet less office, supply chain
facilities, and vacant space.
|
TARGET CORPORATION
Reconciliation of Non-GAAP Financial Measures
To provide additional transparency, we have disclosed non-GAAP
adjusted diluted earnings per share (Adjusted EPS). This metric
excludes certain items presented below. We believe this information
is useful in providing period-to-period comparisons of the results
of our operations. This measure is not in accordance with, or an
alternative to, GAAP. The most comparable GAAP measure is diluted
earnings per share. Adjusted EPS should not be considered in
isolation or as a substitution for analysis of our results as
reported in accordance with GAAP. Other companies may calculate
Adjusted EPS differently, limiting the usefulness of the measure
for comparisons with other companies.
Reconciliation of
Non-GAAP
Adjusted
EPS
|
|
Three Months
Ended
|
|
|
|
October 28,
2023
|
|
October 29,
2022
|
|
|
(millions, except
per share data) (unaudited)
|
|
Pretax
|
|
Net of Tax
|
|
Per Share
|
|
Pretax
|
|
Net of Tax
|
|
Per Share
|
|
Change
|
GAAP and adjusted
diluted earnings per share
|
|
|
|
|
|
$ 2.10
|
|
|
|
|
|
$ 1.54
|
|
36.3 %
|
|
|
|
|
|
Reconciliation of
Non-GAAP
Adjusted
EPS
|
|
Nine Months
Ended
|
|
|
|
October 28,
2023
|
|
October 29,
2022
|
|
|
(millions, except
per share data) (unaudited)
|
|
Pretax
|
|
Net of Tax
|
|
Per Share
|
|
Pretax
|
|
Net of Tax
|
|
Per Share
|
|
Change
|
GAAP diluted earnings
per share
|
|
|
|
|
|
$ 5.96
|
|
|
|
|
|
$ 4.09
|
|
45.6 %
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
(a)
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
20
|
|
$
15
|
|
$ 0.03
|
|
|
Adjusted diluted
earnings per share
|
|
|
|
|
|
$ 5.96
|
|
|
|
|
|
$ 4.12
|
|
44.4 %
|
(a)
Other items unrelated to current period operations, none of which
were individually significant.
|
Reconciliation of
Non-GAAP
Adjusted EPS
Guidance
|
Guidance
|
Q4 2023
|
(unaudited)
|
Per Share
|
GAAP diluted earnings
per share guidance
|
$1.90 -
$2.60
|
Estimated
adjustments
|
|
Other
(a)
|
$
—
|
Adjusted diluted
earnings per share guidance
|
$1.90 -
$2.60
|
(a)
|
Fourth quarter and
full-year 2023 GAAP EPS may include the impact of certain discrete
items, which will be excluded in calculating Adjusted EPS. In the
past, these items have included losses on the early retirement of
debt and certain other items that are discretely managed. The
Company is not currently aware of any such discrete
items.
|
Earnings before interest expense and income taxes (EBIT) and
earnings before interest expense, income taxes, depreciation and
amortization (EBITDA) are non-GAAP financial measures. We believe
these measures provide meaningful information about our operational
efficiency compared with our competitors by excluding the impact of
differences in tax jurisdictions and structures, debt levels, and,
for EBITDA, capital investment. These measures are not in
accordance with, or an alternative to, GAAP. The most comparable
GAAP measure is net earnings. EBIT and EBITDA should not be
considered in isolation or as a substitution for analysis of our
results as reported in accordance with GAAP. Other companies may
calculate EBIT and EBITDA differently, limiting the usefulness of
the measures for comparisons with other companies.
EBIT and
EBITDA
|
|
Three Months Ended
|
|
|
|
Nine Months
Ended
|
|
|
(dollars in
millions) (unaudited)
|
|
October 28,
2023
|
|
October 29,
2022
|
|
Change
|
|
October 28,
2023
|
|
October 29,
2022
|
|
Change
|
Net earnings
|
|
$
971
|
|
$
712
|
|
36.3 %
|
|
$
2,756
|
|
$
1,904
|
|
44.7 %
|
+ Provision for
income taxes
|
|
264
|
|
197
|
|
34.2
|
|
755
|
|
471
|
|
60.6
|
+ Net interest
expense
|
|
107
|
|
125
|
|
(14.1)
|
|
395
|
|
349
|
|
13.4
|
EBIT
|
|
$
1,342
|
|
$
1,034
|
|
29.8 %
|
|
$
3,906
|
|
$
2,724
|
|
43.5 %
|
+ Total
depreciation and amortization (a)
|
|
722
|
|
674
|
|
7.1
|
|
2,072
|
|
2,004
|
|
3.4
|
EBITDA
|
|
$
2,064
|
|
$
1,708
|
|
20.9 %
|
|
$
5,978
|
|
$
4,728
|
|
26.5 %
|
(a)
|
Represents total
depreciation and amortization, including amounts classified within
Depreciation and Amortization and within Cost of Sales.
|
We have also disclosed after-tax ROIC, which is a ratio based on
GAAP information, with the exception of the add-back of operating
lease interest to operating income. We believe this metric is
useful in assessing the effectiveness of our capital allocation
over time. Other companies may calculate ROIC differently, limiting
the usefulness of the measure for comparisons with other
companies.
After-Tax Return on
Invested Capital
|
|
|
(dollars in
millions) (unaudited)
|
|
|
|
|
|
|
Trailing Twelve
Months
|
|
|
Numerator
|
|
October 28,
2023
|
|
October 29,
2022
|
|
|
Operating
income
|
|
$
5,001
|
|
$
4,784
|
|
|
+ Net other
income
|
|
79
|
|
61
|
|
|
EBIT
|
|
5,080
|
|
4,845
|
|
|
+ Operating lease
interest (a)
|
|
106
|
|
89
|
|
|
- Income
taxes (b)
|
|
1,050
|
|
1,059
|
|
|
Net operating profit
after taxes
|
|
$
4,136
|
|
$
3,875
|
|
|
Denominator
|
|
October 28,
2023
|
|
October 29,
2022
|
|
October 30,
2021
|
Current portion of
long-term debt and other borrowings
|
|
$
1,112
|
|
$
2,207
|
|
$
1,176
|
+ Noncurrent
portion of long-term debt
|
|
14,883
|
|
14,237
|
|
11,586
|
+ Shareholders'
investment
|
|
12,514
|
|
11,019
|
|
13,803
|
+ Operating lease
liabilities (c)
|
|
3,351
|
|
2,879
|
|
2,737
|
- Cash
and cash equivalents
|
|
1,910
|
|
954
|
|
5,753
|
Invested
capital
|
|
$
29,950
|
|
$
29,388
|
|
$
23,549
|
Average invested
capital (d)
|
|
$
29,670
|
|
$
26,469
|
|
|
|
|
|
|
|
|
|
After-tax return on
invested capital
|
|
13.9 %
|
|
14.6 %
|
|
|
|
|
(a)
|
Represents the add-back
to operating income driven by the hypothetical interest expense we
would incur if the property under our operating leases were owned
or accounted for as finance leases. Calculated using the discount
rate for each lease and recorded as a component of rent expense
within SG&A. Operating lease interest is added back to
Operating Income in the ROIC calculation to control for differences
in capital structure between us and our competitors.
|
(b)
|
Calculated using the
effective tax rates, which were 20.3 percent and 21.5 percent for
the trailing twelve months ended October 28, 2023, and
October 29, 2022, respectively. For the twelve months ended
October 28, 2023, and October 29, 2022, includes tax
effect of $1.0 billion related to EBIT, and $22 million
and $19 million, respectively, related to operating lease
interest.
|
(c)
|
Total short-term and
long-term operating lease liabilities included within Accrued and
Other Current Liabilities and Noncurrent Operating Lease
Liabilities, respectively.
|
(d)
|
Average based on the
invested capital at the end of the current period and the invested
capital at the end of the comparable prior period.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/target-corporation-reports-third-quarter-earnings-301988468.html
SOURCE Target Corporation