Target Corp ( (TGT) ) has released its Q3 earnings. Here is a breakdown of the information Target Corp presented to its investors.
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Target Corporation, a leading retailer in the United States, operates nearly 2,000 stores and an online platform, offering a wide range of products from groceries to home goods. In its third quarter of 2025, Target reported a slight decline in net sales to $25.3 billion, down 1.5% from the previous year, with digital sales seeing a modest increase of 2.4%. The company’s GAAP earnings per share fell to $1.51 from $1.85 the previous year, while adjusted EPS was $1.78.
Key financial highlights include a notable growth in non-merchandise sales by nearly 18%, driven by strong performance in Roundel, membership, and marketplace revenues. Despite a decrease in overall comparable sales by 2.7%, Target’s digital sales growth and strategic focus on same-day delivery services have shown positive momentum. The company also announced plans to enhance its holiday season offerings with over 20,000 new items and competitive pricing strategies.
Target’s operating income for the quarter was $0.9 billion, a decrease of 18.9% compared to last year, with an operating margin rate of 3.8%. The company continues to focus on cost efficiencies, as reflected in its gross margin rate of 28.2%, slightly down from 28.3% in 2024. Target’s strategic initiatives are aimed at solidifying its merchandising authority and enhancing the shopping experience through technology.
Looking ahead, Target maintains a cautious outlook for the fourth quarter, expecting a low-single digit decline in sales. The company projects full-year GAAP EPS to range between $7.70 and $8.70, with adjusted EPS expected between $7.00 and $8.00, as it navigates ongoing market challenges and focuses on sustainable growth.