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these expectations lead to a wide range for our expected Q4 operating margin rate centered around 3%
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2022 Q3
28 Nov 22
we’re planning for additional pressure from inventory shrink
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2022 Q3
28 Nov 22
we’d expect greater markdown pressure from Q4 promotions given the increase in price sensitivity our guests have shown recently and our commitments to end the year with a clean inventory position
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2022 Q3
28 Nov 22
we believe it’s prudent to plan for a wide range of comparable sales outcomes in the fourth quarter that’s centered around a low single-digit comp decline
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2022 Q3
28 Nov 22
our after-tax ROIC was 14.6% compared with 31.3% a year ago
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2022 Q3
28 Nov 22
we didn’t repurchase any shares in the third quarter
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2022 Q3
28 Nov 22
we’re now expecting our full year CapEx will come in around $5.5 billion in light of continued inflationary pressures affecting the cost of this year’s projects
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2022 Q3
28 Nov 22
SG&A expense line. We saw a small amount of deleverage in Q3
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2022 Q3
28 Nov 22
we’re facing inflationary cost pressures across multiple expense lines in the P&L
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2022 Q3
28 Nov 22
comp sales in Apparel, a high-margin discretionary category, got stronger in Q3, while comps in Hardlines, a lower-margin discretionary category saw a deceleration in the third quarter
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2022 Q3
28 Nov 22
category mix moved from being a slight headwind in Q2 to a small tailwind in Q3, contributing about 20 basis points of gross margin benefit in the quarter
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2022 Q3
28 Nov 22
A third factor that affected our Q3 gross margin was the incremental cost of managing early inventory.
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2022 Q3
28 Nov 22
At Target year-to-date, incremental shortage has already reduced our gross margin by more than $400 million versus last year, and we expect it will reduce our gross margin by more than $600 million for the full year.
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2022 Q3
28 Nov 22
A second factor that’s impacting our gross margin is inventory shortage, or shrink
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2022 Q3
28 Nov 22
our Q3 gross margin rate of 24.7% was more than 3 percentage points higher than in Q2, it came in far short of our expectations, driven by three factors
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2022 Q3
28 Nov 22
The primary driver was a higher-than-expected markdown impact from promotions
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2022 Q3
28 Nov 22
So far in the month of November, trends have been largely consistent with what we were seeing at the end of October
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2022 Q3
28 Nov 22
Nearly all of the slowdown was driven by our discretionary categories, Apparel, Home and Hardlines, as our guests became increasingly cautious in their spending
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2022 Q3
28 Nov 22
for the remainder of the month, we saw a low single-digit decline in comp sales over those last three weeks
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2022 Q3
28 Nov 22
in that week, we saw a high single-digit increase in comp sales compared with last year
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2022 Q3
28 Nov 22