Tue, Jun 10, 1:37 PM (13 days ago)
**Company:** Target Corporation (TGT) **Summary:** Target Corporation reported its Q2 2023 financial results, highlighting several key metrics and trends. The company generated $26.9 billion in revenue, reflecting a 3.5% year-over-year increase. Comparable sales grew by 2.6%, driven by a 2.1% rise in traffic and a 0.5% increase in average basket size. However, the gross margin rate declined by 100 basis points to 28.4%, primarily due to higher markdowns and supply chain costs. Operating income decreased by 14.5% to $1.3 billion, resulting in an operating margin of 4.8%. The company reported earnings per share (EPS) of $1.89, down from $2.19 in the prior-year quarter. Adjusted EPS, excluding certain items, was $1.87, missing analysts' estimates. Cash flow from operations amounted to $1.9 billion, while capital expenditures totaled $666 million, leading to free cash flow of $1.2 billion. The company repurchased $1.3 billion of its common stock and paid $364 million in dividends during the quarter. Target faced uncertainties related to inflation, supply chain disruptions, and changing consumer behavior. Despite these challenges, the company remains focused on its strategic initiatives, including expanding its private-label offerings, enhancing digital capabilities, and optimizing its store portfolio. Future operations may be impacted by ongoing investments in technology and supply chain improvements, as well as potential changes in consumer spending patterns.