Early Access

10-QPeriod: Q1 FY2022

TARGET CORP Quarterly Report for Q1 Ended May 1, 2021

Filed May 28, 2021For Securities:TGT

Summary

Target Corporation's first-quarter 2021 results, ending May 1, 2021, demonstrate a significant rebound and robust growth compared to the prior year, which was impacted by the early stages of the COVID-19 pandemic. Total revenue surged by 23.4% to $24.2 billion, driven by a comparable sales increase of 22.9%, reflecting a substantial 17.1% rise in customer traffic. This strong performance translated into a dramatic increase in profitability, with diluted earnings per share reaching $4.17, a substantial jump from $0.56 in the prior year. The company also benefited from a $335 million pre-tax gain on the sale of its Dermstore subsidiary. Operational efficiencies and favorable sales mix also contributed to a significant improvement in gross margin rate, which rose to 30.0% from 25.1% in the prior year. While selling, general, and administrative (SG&A) expenses increased, they grew at a slower pace than revenue, leading to an improved SG&A expense rate of 18.6% from 20.7%. The company continued its capital allocation strategy, returning significant value to shareholders through dividends and substantial share repurchases.

Financial Highlights

48 data points
Beta

Revenue

$24.20B

Net Income

$2.10B

0.1% Net Margin

EPS (Diluted)

$4.17

Total Assets

$50.47B

Cash & Equivalents

$7.82B

Free Cash Flow

$599.00M

Financial Statements
Beta
Revenue$24.20B
SG&A Expenses$4.51B
Operating Income$2.37B
Interest Expense$108.00M
Net Income$2.10B
EPS (Basic)$4.20
EPS (Diluted)$4.17
Shares Outstanding (Basic)498.60M
Shares Outstanding (Diluted)503.40M

Key Highlights

  • 1Total revenue for Q1 2021 grew 23.4% to $24.2 billion, compared to $19.6 billion in Q1 2020.
  • 2Comparable sales increased by a strong 22.9%, with a significant 17.1% rise in traffic, indicating robust customer demand.
  • 3Diluted earnings per share (EPS) soared to $4.17 from $0.56 in the prior year, reflecting a dramatic improvement in profitability.
  • 4Gross margin rate improved significantly to 30.0% from 25.1%, driven by merchandising actions, favorable sales mix, and lower markdown rates.
  • 5The company reported a $335 million pre-tax gain from the sale of its Dermstore subsidiary, contributing to net other income.
  • 6Target returned $1.2 billion to shareholders through share repurchases in the quarter, supplementing its dividend payments.
  • 7Digitally originated comparable sales saw a substantial increase of 50.2%, highlighting the continued strength of its omnichannel strategy.

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