On August 21^st Target Corporation (TGT) the Nation’s 6^th-ranked retailer, posted results for Q2 FY2024 ending August 3^rd, beating estimates for the bottom line.  For the quarter, the Company earned $1,192 million on sales of $25,021 million with a diluted EPS of $2.57 (estimate $2.18).  For the corresponding Q2 FY2023 ending June 29^th, Target earned $835 million on sales of $24,384 million with a diluted EPS of $1.80. Revenue was higher by 2.6 percent and net earnings were 42.5 percent greater than Q2 FY 2023. Gross margin increased from 27.0 percent in Q2 FY2023 to 28.4 percent for the most recent quarter. Operating margin rose from 4.8 percent to 6.4 percent. 

For Q2 FY2024, comparable same-store sales increased by 2.0 percent compared to a negative 5.4 in Q2 FY2023 due to a rise of 3.0 percent in transactions (‘traffic’) offset by a 0.9 percent  decline value of each transaction (‘ticket’). Digital sales were up 8.7 percent during Q2 FY 2024.

The Company re-launched Target Circle a free loyalty benefits program supplanting the previous paid membership alternative with an increase in membership penetration of 17.7 percent. 

In commenting on results Brian Cornell Chairman and CEO stated, "We made a commitment to get back to growth in the second quarter, and the team delivered, all while expanding operating   margins and growing EPS by more than 40% compared to last year. Importantly, our growth was driven entirely by traffic in stores and our digital channels, with double-digit growth in our same-day delivery services," He added "We also saw improving trends across our discretionary categories, most notably in apparel, and we're seeing continued strength in beauty. Looking ahead, even as we maintain the measured outlook that has served us well, we are focused on building on this positive momentum by executing our strategy and providing the unique combination of newness and value that consumers can only find at Target."

The Company raised guidance for fiscal 2024. Target expects a flat to two percent increase in same-store sales growth and an adjusted EPS ranging from $9.00 to $9.7 "We made a commitment to get back to growth in the second quarter, and the team delivered, all while expanding operating margins and growing EPS by more than 40% compared to last year. Importantly, our growth was driven entirely by traffic in stores and our digital channels, with double-digit growth in our same-day delivery services," said Brian Cornell, chair and chief executive officer of Target Corporation. "We also saw improving trends across our discretionary categories, most notably in apparel, and we're seeing continued strength in beauty. Looking ahead, even as we maintain the measured outlook that has served us well, we are focused on building on this positive momentum by executing our strategy and providing the unique combination of newness and value that consumers can only find at Target."

On August 3^rd Target posted total assets of $55,993 million, up 5.2 percent from July 29^th FY2023. Long-term debt and lease obligations attained $19,087 million. Target Corporation had an intraday market capitalization of $66,700 million on August 21^st. The Company has traded over the past fifty-two weeks in a range of $102.93 to $181.86 with a 50-day moving average of $145.24.  TGT trades with a forward P/E of 15.5. On August 20^th pre-release the share closed at $144.44 but after the morning release opened at $167.04 on August 21^st up 15.6 %.

Twelve-month trailing operating margin was 5.4 percent and profit margin 3.9 percent.  The Company generated a return on assets of 6.8 percent and 32.5 percent on equity.

At the end of FY2023, Target Corporation operated 1,956 stores with a total retail area of 245,939 square feet excluding offices and DCs. The company invested $4,806 million in property and equipment during FY2023.