Fri, May 31, 3:54 PM (143 days ago)
Target Corporation's Q1 2024 financial report reveals a mixed performance. Total revenue decreased by 3.1% year-over-year to $24.5 billion, driven by a 3.2% decline in sales and a 3.9% increase in other revenue. Comparable sales fell 3.7%, with in-store sales declining 4.8% and digital sales rising 1.4%. Operating income dipped 2.4% to $1.3 billion, impacted by higher SG&A expenses and depreciation costs. Net earnings were $942 million, down slightly from $950 million the previous year, leading to a diluted EPS of $2.03. Cash flow from operations decreased to $1.1 billion, primarily due to higher compensation payments. Inventory levels improved, reflecting cost efficiencies and better turnover. The company maintained a strong liquidity position with $3.6 billion in cash and equivalents. Despite the revenue decline, gross margins improved to 27.7% due to cost improvements and favorable category mix. Target remains committed to its capital allocation strategy, focusing on growth investments, dividend payments, and share repurchases. Looking ahead, the company anticipates continued challenges but remains focused on operational efficiency and capital management.