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Target Corporation (TGT-2.88%) has filed its annual report on Form 10-K for the fiscal year ended February 1, 2025. filing
The filing details Target's financial performance, including net sales of $106.6 billion, a decrease from the previous year's $107.4 billion, attributed to one less week in the fiscal year. Comparable sales increased by 0.1%, driven by a 1.4% increase in traffic, partially offset by a 1.3% decrease in average transaction amount.
Operating income for the year was $5.6 billion, down 2.5% from the prior year. Gross margin rate increased to 28.2% from 27.5% in the previous year, reflecting cost improvements and growth in advertising and marketplace revenues.
Target's strategic initiatives included the launch of new brands and partnerships, such as the exclusive 'Taylor Swift | The Eras Tour Book' and a limited-time pickleball collection with Prince. The company also expanded its Target Plus digital marketplace and reimagined its Target Circle loyalty program.
The company opened 23 new stores during the year, focusing on large-format stores as part of its 'stores as hubs' strategy. Over 65% of digital sales were fulfilled through same-day options, which grew by 7.7% compared to the previous year.
Target's SG&A expense rate increased to 20.6% from 20.0% in the prior year, due to higher team member pay, benefits, and general liability expenses.
The company reported a cash and cash equivalents balance of $4.8 billion at the end of the fiscal year, up from $3.8 billion the previous year. Inventory levels increased to $12.7 billion, reflecting earlier receipts and investments in select categories.
Target's capital expenditures for the year totaled $2.9 billion, focusing on strategic initiatives, including store and supply chain investments. The company expects capital expenditures of $4 billion to $5 billion in 2025.
Target paid dividends totaling $2.0 billion during the year and repurchased $1.0 billion worth of shares. The company maintains a disciplined capital allocation strategy, prioritizing growth investments, dividends, and share repurchases.
The filing also discusses various risk factors, including competitive and reputational risks, investment and infrastructure risks, and legal and regulatory risks. Target continues to focus on differentiating its guest experience and managing its supply chain and technology infrastructure.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Target Corporation annual 10-K report dated March 12, 2025. To report an error, please email earnings@qz.com.