Cover Page
Cover Page - shares | 6 Months Ended | |
Aug. 03, 2024 | Aug. 23, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Aug. 03, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-6049 | |
Entity Registrant Name | TARGET CORPORATION | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 41-0215170 | |
Entity Address, Address Line One | 1000 Nicollet Mall | |
Entity Address, City or Town | Minneapolis | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55403 | |
City Area Code | 612 | |
Local Phone Number | 304-6073 | |
Title of 12(b) Security | Common stock, par value $0.0833 per share | |
Trading Symbol | TGT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 460,674,666 | |
Entity Central Index Key | 0000027419 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --02-01 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Revenue | $ 25,452 | $ 24,773 | $ 49,983 | $ 50,095 |
Cost of sales | 17,799 | 17,798 | 35,248 | 36,184 |
Selling, general and administrative expenses | 5,392 | 5,184 | 10,560 | 10,209 |
Depreciation and amortization (exclusive of depreciation included in cost of sales) | 626 | 594 | 1,244 | 1,177 |
Operating income | 1,635 | 1,197 | 2,931 | 2,525 |
Net interest expense | 110 | 141 | 216 | 288 |
Net other income | (20) | (16) | (49) | (39) |
Earnings before income taxes | 1,545 | 1,072 | 2,764 | 2,276 |
Provision for income taxes | 353 | 237 | 630 | 491 |
Net earnings | $ 1,192 | $ 835 | $ 2,134 | $ 1,785 |
Basic earnings per share (in dollars per share) | $ 2.58 | $ 1.81 | $ 4.62 | $ 3.87 |
Diluted earnings per share (in dollars per share) | $ 2.57 | $ 1.80 | $ 4.60 | $ 3.86 |
Weighted average common shares outstanding | ||||
Basic (in shares) | 462.5 | 461.6 | 462.4 | 461.3 |
Diluted (in shares) | 463.5 | 462.5 | 463.7 | 462.7 |
Antidilutive shares (in shares) | 2.3 | 2.9 | 1.8 | 2.4 |
Sales | ||||
Revenue | $ 25,021 | $ 24,384 | $ 49,164 | $ 49,332 |
Other revenue | ||||
Revenue | $ 431 | $ 389 | $ 819 | $ 763 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 1,192 | $ 835 | $ 2,134 | $ 1,785 |
Other comprehensive (loss) / income, net of tax | ||||
Pension benefit liabilities | 0 | 1 | 0 | 3 |
Cash flow hedges and currency translation adjustment | (5) | (4) | (10) | (9) |
Other comprehensive loss | (5) | (3) | (10) | (6) |
Comprehensive income | $ 1,187 | $ 832 | $ 2,124 | $ 1,779 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - USD ($) $ in Millions | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
Assets | |||
Cash and cash equivalents | $ 3,497 | $ 3,805 | $ 1,617 |
Inventory | 12,604 | 11,886 | 12,684 |
Other current assets | 1,817 | 1,807 | 1,797 |
Total current assets | 17,918 | 17,498 | 16,098 |
Property and equipment | |||
Land | 6,645 | 6,547 | 6,504 |
Buildings and improvements | 38,324 | 37,066 | 35,889 |
Fixtures and equipment | 8,690 | 8,765 | 7,936 |
Computer hardware and software | 3,437 | 3,428 | 3,178 |
Construction-in-progress | 830 | 1,703 | 2,641 |
Accumulated depreciation | (24,851) | (24,413) | (23,201) |
Property and equipment, net | 33,075 | 33,096 | 32,947 |
Operating lease assets | 3,545 | 3,362 | 2,840 |
Other noncurrent assets | 1,457 | 1,400 | 1,321 |
Total assets | 55,995 | 55,356 | 53,206 |
Liabilities and shareholders’ investment | |||
Accounts payable | 12,595 | 12,098 | 12,278 |
Accrued and other current liabilities | 5,749 | 6,090 | 5,948 |
Current portion of long-term debt and other borrowings | 1,640 | 1,116 | 1,106 |
Total current liabilities | 19,984 | 19,304 | 19,332 |
Long-term debt and other borrowings | 13,654 | 14,922 | 14,926 |
Noncurrent operating lease liabilities | 3,444 | 3,279 | 2,798 |
Deferred income taxes | 2,495 | 2,480 | 2,334 |
Other noncurrent liabilities | 1,989 | 1,939 | 1,826 |
Total noncurrent liabilities | 21,582 | 22,620 | 21,884 |
Shareholders’ investment | |||
Common stock | 38 | 38 | 38 |
Additional paid-in capital | 6,831 | 6,761 | 6,610 |
Retained earnings | 8,030 | 7,093 | 5,767 |
Accumulated other comprehensive loss | (470) | (460) | (425) |
Total shareholders’ investment | 14,429 | 13,432 | 11,990 |
Total liabilities and shareholders’ investment | $ 55,995 | $ 55,356 | $ 53,206 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Position (Parenthetical) - $ / shares | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
Statement of Financial Position [Abstract] | |||
Common stock, shares authorized (in shares) | 6,000,000,000 | 6,000,000,000 | 6,000,000,000 |
Common stock, par value (in dollars per share) | $ 0.0833 | $ 0.0833 | $ 0.0833 |
Common stock, shares issued (in shares) | 461,600,215 | 461,675,441 | 461,600,640 |
Common stock, shares outstanding (in shares) | 461,600,215 | 461,675,441 | 461,600,640 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in shares) | 0 | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Aug. 03, 2024 | Jul. 29, 2023 | |
Operating activities | ||
Net earnings | $ 2,134 | $ 1,785 |
Adjustments to reconcile net earnings to cash provided by operating activities: | ||
Depreciation and amortization | 1,461 | 1,350 |
Share-based compensation expense | 149 | 107 |
Deferred income taxes | 16 | 141 |
Noncash losses / (gains) and other, net | 22 | 11 |
Changes in operating accounts: | ||
Inventory | (718) | 815 |
Other assets | (53) | 62 |
Accounts payable | 522 | (1,137) |
Accrued and other liabilities | (194) | 264 |
Cash provided by operating activities | 3,339 | 3,398 |
Investing activities | ||
Expenditures for property and equipment | (1,313) | (2,825) |
Proceeds from disposal of property and equipment | 2 | 6 |
Other investments | 6 | (2) |
Cash required for investing activities | (1,305) | (2,821) |
Financing activities | ||
Reductions of long-term debt | (1,076) | (72) |
Dividends paid | (1,017) | (996) |
Repurchase of stock | (155) | 0 |
Shares withheld for taxes on share-based compensation | (94) | (121) |
Cash required for financing activities | (2,342) | (1,189) |
Net decrease in cash and cash equivalents | (308) | (612) |
Cash and cash equivalents at beginning of period | 3,805 | 2,229 |
Cash and cash equivalents at end of period | 3,497 | 1,617 |
Supplemental information | ||
Leased assets obtained in exchange for new finance lease liabilities | 304 | 20 |
Leased assets obtained in exchange for new operating lease liabilities | $ 362 | $ 337 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Investment - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Aug. 03, 2024 | May 04, 2024 | Feb. 03, 2024 | Oct. 28, 2023 | Jul. 29, 2023 | Apr. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Increase (Decrease) in Shareholders' Investment | ||||||||
Beginning balance (in shares) | 461,675,441 | 461,600,640 | 461,675,441 | |||||
Beginning balance | $ 13,840 | $ 13,432 | $ 12,514 | $ 11,990 | $ 11,605 | $ 11,232 | $ 13,432 | $ 11,232 |
Net earnings | 1,192 | 942 | 1,382 | 971 | 835 | 950 | 2,134 | 1,785 |
Other comprehensive loss | (5) | (5) | (30) | (5) | (3) | (3) | $ (10) | $ (6) |
Dividends declared | $ (527) | (516) | (514) | (513) | $ (516) | (507) | ||
Repurchase of stock (in shares) | (1,100,000) | 0 | (1,100,000) | 0 | ||||
Repurchase of stock | $ (155) | |||||||
Stock options and awards | $ 84 | (13) | $ 80 | 71 | $ 69 | (67) | ||
Ending balance (in shares) | 461,600,215 | 461,675,441 | 461,600,640 | 461,600,215 | 461,600,640 | |||
Ending balance | $ 14,429 | $ 13,840 | $ 13,432 | $ 12,514 | $ 11,990 | $ 11,605 | $ 14,429 | $ 11,990 |
Common Stock | ||||||||
Increase (Decrease) in Shareholders' Investment | ||||||||
Beginning balance (in shares) | 462,600,000 | 461,700,000 | 461,700,000 | 461,600,000 | 461,600,000 | 460,300,000 | 461,700,000 | 460,300,000 |
Beginning balance | $ 39 | $ 38 | $ 38 | $ 38 | $ 38 | $ 38 | $ 38 | $ 38 |
Repurchase of stock (in shares) | (1,100,000) | |||||||
Repurchase of stock | $ (1) | |||||||
Stock options and awards (in shares) | 100,000 | 900,000 | 100,000 | 1,300,000 | ||||
Stock options and awards | $ 1 | |||||||
Ending balance (in shares) | 461,600,000 | 462,600,000 | 461,700,000 | 461,700,000 | 461,600,000 | 461,600,000 | 461,600,000 | 461,600,000 |
Ending balance | $ 38 | $ 39 | $ 38 | $ 38 | $ 38 | $ 38 | $ 38 | $ 38 |
Additional Paid-in Capital | ||||||||
Increase (Decrease) in Shareholders' Investment | ||||||||
Beginning balance | 6,747 | 6,761 | 6,681 | 6,610 | 6,541 | 6,608 | 6,761 | 6,608 |
Repurchase of stock | 0 | |||||||
Stock options and awards | 84 | (14) | 80 | 71 | 69 | (67) | ||
Ending balance | 6,831 | 6,747 | 6,761 | 6,681 | 6,610 | 6,541 | 6,831 | 6,610 |
Retained Earnings | ||||||||
Increase (Decrease) in Shareholders' Investment | ||||||||
Beginning balance | 7,519 | 7,093 | 6,225 | 5,767 | 5,448 | 5,005 | 7,093 | 5,005 |
Net earnings | 1,192 | 942 | 1,382 | 971 | 835 | 950 | ||
Dividends declared | (527) | (516) | (514) | (513) | (516) | (507) | ||
Repurchase of stock | (154) | |||||||
Ending balance | 8,030 | 7,519 | 7,093 | 6,225 | 5,767 | 5,448 | 8,030 | 5,767 |
Accumulated Other Comprehensive (Loss)/Income | ||||||||
Increase (Decrease) in Shareholders' Investment | ||||||||
Beginning balance | (465) | (460) | (430) | (425) | (422) | (419) | (460) | (419) |
Other comprehensive loss | (5) | (5) | (30) | (5) | (3) | (3) | ||
Ending balance | $ (470) | $ (465) | $ (460) | $ (430) | $ (425) | $ (422) | $ (470) | $ (425) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Investment (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |
Aug. 03, 2024 | Jul. 29, 2023 | Feb. 03, 2024 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (in dollars per share) | $ 1.12 | $ 1.10 | $ 4.38 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Aug. 03, 2024 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies These unaudited condensed consolidated financial statements are prepared in accordance with the rules and regulations of the Securities and Exchange Commission applicable to interim financial statements. While these statements reflect all normal recurring adjustments that are, in the opinion of management, necessary for fair presentation of the results of the interim period, they do not include all of the information and footnotes required by United States generally accepted accounting principles (U.S. GAAP) for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the financial statement disclosures in our most recent Form 10-K. We use the same accounting policies in preparing quarterly and annual financial statements. We operate as a single segment that is designed to enable guests to purchase products seamlessly in stores or through our digital channels. Nearly all of our revenues are generated in the U.S. The vast majority of our long-lived assets are located within the U.S. Due to the seasonal nature of our business, quarterly revenues, expenses, earnings, and cash flows are not necessarily indicative of the results that may be expected for the full year. |
Revenue
Revenue | 6 Months Ended |
Aug. 03, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Merchandise sales represent the vast majority of our revenues. We also earn revenues from a variety of other sources, most notably credit card profit-sharing income from our arrangement with TD Bank Group (TD). Revenue Three Months Ended Six Months Ended (millions) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Apparel & accessories (a) $ 4,261 $ 4,101 $ 8,158 $ 8,068 Beauty (b) 3,384 3,085 6,503 6,101 Food & beverage (c) 5,538 5,392 11,391 11,389 Hardlines (d) 3,322 3,383 6,482 6,774 Home furnishings & décor (e) 3,908 3,955 7,427 7,810 Household essentials (f) 4,564 4,428 9,113 9,094 Other 44 40 90 96 Sales 25,021 24,384 49,164 49,332 Credit card profit sharing 144 169 286 343 Other 287 220 533 420 Other revenue 431 389 819 763 Total revenue $ 25,452 $ 24,773 $ 49,983 $ 50,095 (a) Includes apparel for women, men, young adults, kids, toddlers, and babies, as well as jewelry, accessories, and shoes. (b) Includes skin and bath care, cosmetics, hair care, oral care, deodorant, and shaving products. (c) Includes dry and perishable grocery, including snacks, candy, beverages, deli, bakery, meat, produce and food service (primarily Starbucks) in our stores. (d) Includes electronics, including video games and consoles, toys, sporting goods, entertainment, and luggage. (e) Includes bed and bath, home décor, school/office supplies, storage, small appliances, kitchenware, greeting cards, party supplies, furniture, lighting, home improvement, and seasonal merchandise. (f) Includes household cleaning, paper products, over-the-counter healthcare, vitamins and supplements, baby gear, and pet supplies. Merchandise sales — We record almost all retail store revenues at the point of sale. Digitally originated sales may include shipping revenue and are recorded upon delivery to the guest or upon guest pickup at the store. Sales are recognized net of expected returns, which we estimate using historical return patterns and our expectation of future returns. As of August 3, 2024, February 3, 2024, and July 29, 2023, the accrual for estimated returns was $193 million, $170 million, and $177 million, respectively. Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance. Gift Card Liability Activity February 3, Gift Cards Issued During Current Period But Not Redeemed (b) Revenue Recognized From Beginning Liability August 3, (millions) Gift card liability (a) $ 1,162 $ 431 $ (601) $ 992 (a) Included in Accrued and Other Current Liabilities. (b) Net of estimated breakage. Other Revenue Credit card profit sharing — We receive payments under a credit card program agreement with TD. Under the agreement, we receive a percentage of the profits generated by the Target Circle Credit Card and Target MasterCard receivables in exchange for performing account servicing and primary marketing functions. TD underwrites, funds, and owns Target Circle Credit Card and Target MasterCard receivables, controls risk management policies, and oversees regulatory compliance. Other — Includes advertising revenue, commissions earned on third-party sales through Target.com, Shipt membership and service revenues, rental income, and other miscellaneous revenues. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Aug. 03, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value measurements are reported in one of three levels reflecting the significant inputs used to determine fair value. Financial Instruments Measured On a Recurring Basis Fair Value (millions) Classification Measurement Level August 3, 2024 February 3, 2024 July 29, 2023 Assets Short-term investments Cash and Cash Equivalents Level 1 $ 2,465 $ 2,897 $ 739 Prepaid forward contracts Other Current Assets Level 1 24 25 23 Interest rate swaps Other Noncurrent Assets Level 2 3 — — Liabilities Interest rate swaps Other Current Liabilities Level 2 — 3 6 Interest rate swaps Other Noncurrent Liabilities Level 2 82 123 130 Significant Financial Instruments Not Measured at Fair Value (a) (millions) August 3, 2024 February 3, 2024 July 29, 2023 Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 13,157 $ 12,578 $ 14,151 $ 13,467 $ 14,147 $ 13,344 (a) The carrying amounts of certain other current assets, commercial paper, accounts payable, and certain accrued and other current liabilities approximate fair value due to their short-term nature. (b) The fair value of debt is generally measured using a discounted cash flow analysis based on current market interest rates for the same or similar types of financial instruments and would be classified as Level 2. These amounts exclude commercial paper, fair value hedge adjustments, and lease liabilities. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Aug. 03, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment We review long-lived assets for impairment when store performance expectations, events, or changes in circumstances—such as a decision to relocate or close a store, office, or distribution center, discontinue a project, or make significant software changes—indicate that the asset’s carrying value may not be recoverable. We recognized impairment charges of $36 million for the three and six months ended August 3, 2024, and $33 million for the three and six months ended July 29, 2023. These impairment charges are included in Selling, General and Administrative (SG&A) Expenses. |
Supplier Finance Programs
Supplier Finance Programs | 6 Months Ended |
Aug. 03, 2024 | |
Payables and Accruals [Abstract] | |
Supplier Finance Programs | Supplier Finance Programs We have arrangements with several financial institutions to act as our paying agents to certain vendors. The arrangements also permit the financial institutions to provide vendors with an option, at our vendors' sole discretion, to sell their receivables from Target to the financial institutions. A vendor’s election to receive early payment at a discounted amount from the financial institutions does not change the amount that we must remit to the financial institutions or our payment date, which is up to 120 days from the invoice date. We do not pay any fees or pledge any security to these financial institutions under these arrangements. The arrangements can be terminated by either party with notice ranging up to 120 days. |
Commercial Paper and Long-Term
Commercial Paper and Long-Term Debt | 6 Months Ended |
Aug. 03, 2024 | |
Debt Disclosure [Abstract] | |
Commercial Paper and Long-Term Debt | Commercial Paper and Long-Term Debt In July 2024, we repaid $1.0 billion of 3.5 percent unsecured fixed rate debt at maturity. We obtain short-term financing from time to time under our commercial paper program. There was no commercial paper outstanding at any time during the six months ended August 3, 2024. For the six months ended July 29, 2023, the maximum amount outstanding was $90 million, and the average daily amount outstanding was $2 million, at a weighted average annual interest rate of 4.9 percent. No balances were outstanding as of July 29, 2023. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Aug. 03, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Our derivative instruments consist of interest rate swaps used to mitigate interest rate risk. As a result, we have counterparty credit exposure to large global financial institutions, which we monitor on an ongoing basis. Note 3 to the Consolidated Financial Statements provides the fair value and classification of these instruments. In July 2024, an interest rate swap with a notional amount of $250 million matured. We were party to interest rate swaps with notional amounts totaling $2.20 billion as of August 3, 2024, and $2.45 billion as of both February 3, 2024, and July 29, 2023. We pay a floating rate and receive a fixed rate under each of these agreements. All of the agreements are designated as fair value hedges, and all were considered to be perfectly effective under the shortcut method during the three and six months ended August 3, 2024, and July 29, 2023. Effect of Hedges on Debt (millions) August 3, 2024 February 3, 2024 July 29, 2023 Long-term debt and other borrowings Carrying amount of hedged debt $ 2,113 $ 2,316 $ 2,305 Cumulative hedging adjustments, included in carrying amount (79) (126) (136) Effect of Hedges on Net Interest Expense Three Months Ended Six Months Ended (millions) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swaps designated as fair value hedges $ 78 $ (71) $ 47 $ (62) Hedged debt (78) 71 (47) 62 Gain on cash flow hedges recognized in Net Interest Expense 6 6 12 12 Total $ 6 $ 6 $ 12 $ 12 |
Share Repurchase
Share Repurchase | 6 Months Ended |
Aug. 03, 2024 | |
Equity [Abstract] | |
Share Repurchase | Share Repurchase We periodically repurchase shares of our common stock under a board-authorized repurchase program through a combination of open market transactions, accelerated share repurchase (ASR) arrangements, and other privately negotiated transactions with financial institutions. Share Repurchase Activity Three Months Ended Six Months Ended (millions, except per share data) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Number of shares purchased 1.1 — 1.1 — Average price paid per share $ 145.94 $ — $ 145.94 $ — Total investment $ 155 $ — $ 155 $ — |
Pension Benefits
Pension Benefits | 6 Months Ended |
Aug. 03, 2024 | |
Retirement Benefits [Abstract] | |
Pension Benefits | Pension Benefits We provide pension plan benefits to eligible team members. Net Pension Benefits Expense Three Months Ended Six Months Ended (millions) Classification August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Service cost benefits earned SG&A Expenses $ 19 $ 19 $ 39 $ 39 Interest cost on projected benefit obligation Net Other Income 42 42 83 83 Expected return on assets Net Other Income (70) (67) (140) (134) Amortization of losses Net Other Income — 1 — 1 Prior service cost Net Other Income 8 8 8 11 Total $ (1) $ 3 $ (10) $ — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Aug. 03, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Change in Accumulated Other Comprehensive Income (Loss) Cash Flow Hedges Currency Translation Adjustment Pension Total (millions) February 3, 2024 $ 283 $ (24) $ (719) $ (460) Other comprehensive income (loss) before reclassifications, net of tax — (1) — (1) Amounts reclassified from AOCI, net of tax (9) — — (9) August 3, 2024 $ 274 $ (25) $ (719) $ (470) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Aug. 03, 2024 | May 04, 2024 | Feb. 03, 2024 | Oct. 28, 2023 | Jul. 29, 2023 | Apr. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Pay vs Performance Disclosure | ||||||||
Net earnings | $ 1,192 | $ 942 | $ 1,382 | $ 971 | $ 835 | $ 950 | $ 2,134 | $ 1,785 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Aug. 03, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Aug. 03, 2024 | |
Accounting Policies [Abstract] | |
Revenues | Merchandise sales — Credit card profit sharing — We receive payments under a credit card program agreement with TD. Under the agreement, we receive a percentage of the profits generated by the Target Circle Credit Card and Target MasterCard receivables in exchange for performing account servicing and primary marketing functions. TD underwrites, funds, and owns Target Circle Credit Card and Target MasterCard receivables, controls risk management policies, and oversees regulatory compliance. Other — Includes advertising revenue, commissions earned on third-party sales through Target.com, Shipt membership and service revenues, rental income, and other miscellaneous revenues. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue | Revenue Three Months Ended Six Months Ended (millions) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Apparel & accessories (a) $ 4,261 $ 4,101 $ 8,158 $ 8,068 Beauty (b) 3,384 3,085 6,503 6,101 Food & beverage (c) 5,538 5,392 11,391 11,389 Hardlines (d) 3,322 3,383 6,482 6,774 Home furnishings & décor (e) 3,908 3,955 7,427 7,810 Household essentials (f) 4,564 4,428 9,113 9,094 Other 44 40 90 96 Sales 25,021 24,384 49,164 49,332 Credit card profit sharing 144 169 286 343 Other 287 220 533 420 Other revenue 431 389 819 763 Total revenue $ 25,452 $ 24,773 $ 49,983 $ 50,095 (a) Includes apparel for women, men, young adults, kids, toddlers, and babies, as well as jewelry, accessories, and shoes. (b) Includes skin and bath care, cosmetics, hair care, oral care, deodorant, and shaving products. (c) Includes dry and perishable grocery, including snacks, candy, beverages, deli, bakery, meat, produce and food service (primarily Starbucks) in our stores. (d) Includes electronics, including video games and consoles, toys, sporting goods, entertainment, and luggage. (e) Includes bed and bath, home décor, school/office supplies, storage, small appliances, kitchenware, greeting cards, party supplies, furniture, lighting, home improvement, and seasonal merchandise. (f) Includes household cleaning, paper products, over-the-counter healthcare, vitamins and supplements, baby gear, and pet supplies. |
Schedule of Gift Card Liability | Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance. Gift Card Liability Activity February 3, Gift Cards Issued During Current Period But Not Redeemed (b) Revenue Recognized From Beginning Liability August 3, (millions) Gift card liability (a) $ 1,162 $ 431 $ (601) $ 992 (a) Included in Accrued and Other Current Liabilities. (b) Net of estimated breakage. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Measured on a Recurring Basis | Fair value measurements are reported in one of three levels reflecting the significant inputs used to determine fair value. Financial Instruments Measured On a Recurring Basis Fair Value (millions) Classification Measurement Level August 3, 2024 February 3, 2024 July 29, 2023 Assets Short-term investments Cash and Cash Equivalents Level 1 $ 2,465 $ 2,897 $ 739 Prepaid forward contracts Other Current Assets Level 1 24 25 23 Interest rate swaps Other Noncurrent Assets Level 2 3 — — Liabilities Interest rate swaps Other Current Liabilities Level 2 — 3 6 Interest rate swaps Other Noncurrent Liabilities Level 2 82 123 130 |
Schedule of Significant Financial Instruments Not Measured at Fair Value | Significant Financial Instruments Not Measured at Fair Value (a) (millions) August 3, 2024 February 3, 2024 July 29, 2023 Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion (b) $ 13,157 $ 12,578 $ 14,151 $ 13,467 $ 14,147 $ 13,344 (a) The carrying amounts of certain other current assets, commercial paper, accounts payable, and certain accrued and other current liabilities approximate fair value due to their short-term nature. (b) The fair value of debt is generally measured using a discounted cash flow analysis based on current market interest rates for the same or similar types of financial instruments and would be classified as Level 2. These amounts exclude commercial paper, fair value hedge adjustments, and lease liabilities. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Effect of Hedges on Debt and Net Interest Expense | Effect of Hedges on Debt (millions) August 3, 2024 February 3, 2024 July 29, 2023 Long-term debt and other borrowings Carrying amount of hedged debt $ 2,113 $ 2,316 $ 2,305 Cumulative hedging adjustments, included in carrying amount (79) (126) (136) Effect of Hedges on Net Interest Expense Three Months Ended Six Months Ended (millions) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Gain (loss) on fair value hedges recognized in Net Interest Expense Interest rate swaps designated as fair value hedges $ 78 $ (71) $ 47 $ (62) Hedged debt (78) 71 (47) 62 Gain on cash flow hedges recognized in Net Interest Expense 6 6 12 12 Total $ 6 $ 6 $ 12 $ 12 |
Share Repurchase (Tables)
Share Repurchase (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Equity [Abstract] | |
Schedule of Share Repurchase Activity (excluding ASR) | Share Repurchase Activity Three Months Ended Six Months Ended (millions, except per share data) August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Number of shares purchased 1.1 — 1.1 — Average price paid per share $ 145.94 $ — $ 145.94 $ — Total investment $ 155 $ — $ 155 $ — |
Pension Benefits (Tables)
Pension Benefits (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Pension Plan Benefits | Net Pension Benefits Expense Three Months Ended Six Months Ended (millions) Classification August 3, 2024 July 29, 2023 August 3, 2024 July 29, 2023 Service cost benefits earned SG&A Expenses $ 19 $ 19 $ 39 $ 39 Interest cost on projected benefit obligation Net Other Income 42 42 83 83 Expected return on assets Net Other Income (70) (67) (140) (134) Amortization of losses Net Other Income — 1 — 1 Prior service cost Net Other Income 8 8 8 11 Total $ (1) $ 3 $ (10) $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Aug. 03, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of the Changes in Accumulated Other Comprehensive Income (Loss) | Change in Accumulated Other Comprehensive Income (Loss) Cash Flow Hedges Currency Translation Adjustment Pension Total (millions) February 3, 2024 $ 283 $ (24) $ (719) $ (460) Other comprehensive income (loss) before reclassifications, net of tax — (1) — (1) Amounts reclassified from AOCI, net of tax (9) — — (9) August 3, 2024 $ 274 $ (25) $ (719) $ (470) |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 25,452 | $ 24,773 | $ 49,983 | $ 50,095 |
Apparel & accessories | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,261 | 4,101 | 8,158 | 8,068 |
Beauty | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,384 | 3,085 | 6,503 | 6,101 |
Food & beverage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 5,538 | 5,392 | 11,391 | 11,389 |
Hardlines | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,322 | 3,383 | 6,482 | 6,774 |
Home furnishings & decor | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,908 | 3,955 | 7,427 | 7,810 |
Household essentials | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,564 | 4,428 | 9,113 | 9,094 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 44 | 40 | 90 | 96 |
Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 25,021 | 24,384 | 49,164 | 49,332 |
Credit card profit sharing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 144 | 169 | 286 | 343 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 287 | 220 | 533 | 420 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 431 | $ 389 | $ 819 | $ 763 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
Revenue from Contract with Customer [Abstract] | |||
Accrual for estimated returns | $ 193 | $ 170 | $ 177 |
Revenue - Gift Card Liability (
Revenue - Gift Card Liability (Details) $ in Millions | 6 Months Ended |
Aug. 03, 2024 USD ($) | |
Change in Contract with Customer, Liability [Roll Forward] | |
Beginning balance | $ 1,162 |
Gift Cards Issued During Current Period But Not Redeemed | 431 |
Revenue Recognized From Beginning Liability | (601) |
Ending balance | $ 992 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
Assets | |||
Prepaid forward contracts classified as Other Current Assets | $ 1,817 | $ 1,807 | $ 1,797 |
Interest rate swaps classified as Other Noncurrent Assets | 1,457 | 1,400 | 1,321 |
Liabilities | |||
Interest rate swaps classified as Other Noncurrent Liabilities | 1,989 | 1,939 | 1,826 |
Fair value measured on recurring basis | Level 1 | Prepaid forward contracts | |||
Assets | |||
Prepaid forward contracts classified as Other Current Assets | 24 | 25 | 23 |
Fair value measured on recurring basis | Level 1 | Short-term investments | |||
Assets | |||
Short-term investments classified as Cash and Cash Equivalents | 2,465 | 2,897 | 739 |
Fair value measured on recurring basis | Level 2 | Interest rate swaps | |||
Assets | |||
Interest rate swaps classified as Other Noncurrent Assets | 3 | 0 | 0 |
Liabilities | |||
Interest rate swaps classified as Other Current Liabilities | 0 | 3 | 6 |
Interest rate swaps classified as Other Noncurrent Liabilities | $ 82 | $ 123 | $ 130 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Significant Financial Instruments not Measured at Fair Value (Details) - USD ($) $ in Millions | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
Carrying Amount | |||
Financial Instruments, Balance Sheet Groupings | |||
Long-term debt, including current portion | $ 13,157 | $ 14,151 | $ 14,147 |
Fair Value | |||
Financial Instruments, Balance Sheet Groupings | |||
Long-term debt, including current portion | $ 12,578 | $ 13,467 | $ 13,344 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Property, Plant and Equipment [Abstract] | ||||
Impairment charges | $ 36 | $ 33 | $ 36 | $ 33 |
Supplier Finance Programs (Deta
Supplier Finance Programs (Details) - USD ($) $ in Billions | 6 Months Ended | ||
Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 | |
Payables and Accruals [Abstract] | |||
Payment timing (in days) | 120 days | ||
Maximum days for termination notice (in days) | 120 days | ||
Outstanding obligation | $ 3.7 | $ 3.4 | $ 3.7 |
Commercial Paper and Long-Ter_2
Commercial Paper and Long-Term Debt (Details) - USD ($) | 6 Months Ended | ||
Jul. 29, 2023 | Aug. 03, 2024 | Jul. 31, 2024 | |
Debt Instrument [Line Items] | |||
Maximum amount outstanding during period | $ 90,000,000 | ||
Average daily amount outstanding | $ 2,000,000 | ||
Weighted average interest rate (in percent) | 4.90% | ||
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Amount outstanding of short term debt | $ 0 | $ 0 | |
Unsecured Debt | Unsecured Fixed Rate 3.5% Debt | |||
Debt Instrument [Line Items] | |||
Market value of debt repurchased | $ 1,000,000,000 | ||
Interest rate (percent) | 3.50% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Aug. 03, 2024 | Jul. 31, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
Designated as Hedging Instrument | Interest Rate Swaps | ||||
Derivative Contracts - Effect on Results of Operations (millions) | ||||
Notional amount | $ 2,200 | $ 250 | $ 2,450 | $ 2,450 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Effect of Hedges on Debt (Details) - USD ($) $ in Millions | Aug. 03, 2024 | Feb. 03, 2024 | Jul. 29, 2023 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Carrying amount of hedged debt | $ 2,113 | $ 2,316 | $ 2,305 |
Cumulative hedging adjustments, included in carrying amount | $ (79) | $ (126) | $ (136) |
Hedged Liability, Statement of Financial Position [Extensible Enumeration] | Long-term debt and other borrowings | Long-term debt and other borrowings | Long-term debt and other borrowings |
Derivative Financial Instrume_5
Derivative Financial Instruments - Effect of Hedges on Net Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Gain (loss) on fair value hedges recognized in Net Interest Expense | ||||
Interest rate swaps designated as fair value hedges | $ 78 | $ (71) | $ 47 | $ (62) |
Hedged debt | (78) | 71 | (47) | 62 |
Gain on cash flow hedges recognized in Net Interest Expense | 6 | 6 | 12 | 12 |
Total | $ 6 | $ 6 | $ 12 | $ 12 |
Share Repurchase - Schedule of
Share Repurchase - Schedule of Activity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Equity [Abstract] | ||||
Number of shares purchased (in shares) | 1.1 | 0 | 1.1 | 0 |
Average price paid per share (in dollars per share) | $ 145.94 | $ 0 | $ 145.94 | $ 0 |
Total investment | $ 155 | $ 0 | $ 155 | $ 0 |
Pension Benefits (Details)
Pension Benefits (Details) - Pension Plan - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 03, 2024 | Jul. 29, 2023 | Aug. 03, 2024 | Jul. 29, 2023 | |
Net Pension Benefits Expense | ||||
Service cost benefits earned | $ 19 | $ 19 | $ 39 | $ 39 |
Interest cost on projected benefit obligation | 42 | 42 | 83 | 83 |
Expected return on assets | (70) | (67) | (140) | (134) |
Amortization of losses | 0 | 1 | 0 | 1 |
Prior service cost | 8 | 8 | 8 | 11 |
Total | $ (1) | $ 3 | $ (10) | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions | 6 Months Ended |
Aug. 03, 2024 USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | $ 13,432 |
Amounts reclassified from AOCI, net of tax | (9) |
Ending balance | 14,429 |
Total | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (460) |
Other comprehensive income (loss) before reclassifications, net of tax | (1) |
Ending balance | (470) |
Cash Flow Hedges | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | 283 |
Other comprehensive income (loss) before reclassifications, net of tax | 0 |
Amounts reclassified from AOCI, net of tax | (9) |
Ending balance | 274 |
Currency Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (24) |
Other comprehensive income (loss) before reclassifications, net of tax | (1) |
Amounts reclassified from AOCI, net of tax | 0 |
Ending balance | (25) |
Pension | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Beginning balance | (719) |
Other comprehensive income (loss) before reclassifications, net of tax | 0 |
Amounts reclassified from AOCI, net of tax | 0 |
Ending balance | $ (719) |