Target Corporation operates as a large retailer offering a wide assortment of general merchandise and food, both in physical stores and through digital channels. The company manages its business across five core merchandise categories: Apparel & Accessories, Beauty & Household Essentials, Food & Beverage, Hardlines, and Home Furnishings & Décor . Merchandise sales represent the vast majority of Target's revenues, with additional income from credit card profit-sharing and other sources . Approximately one-third of Target's sales come from its owned and exclusive brands, which include popular names like Cat & Jack, Threshold, and Good & Gather .
- Beauty & Household Essentials - Offers a wide range of beauty products and household necessities, catering to everyday consumer needs.
- Food & Beverage - Provides a diverse selection of groceries and beverages, including fresh produce and packaged goods.
- Home Furnishings & Décor - Features a variety of home furniture and decorative items, enhancing living spaces with style and functionality.
- Apparel & Accessories - Sells clothing and fashion accessories for men, women, and children, including exclusive brands.
- Hardlines - Includes durable goods such as electronics, sporting goods, and toys, appealing to a broad customer base.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Brian C. Cornell ExecutiveBoard | Chair of the Board and Chief Executive Officer (CEO) | Board Member at Yum! Brands, Inc.; Member of National Retail Federation’s Executive Committee; Member of The Business Council. | Brian C. Cornell has been CEO since August 2014, leading Target's strategic initiatives, including digital transformation and supply chain improvements. Previously held leadership roles at PepsiCo and Walmart. | View Report → |
A. Christina Hennington Executive | Chief Strategy and Growth Officer | None reported. | Joined Target in 2003. Leads growth strategy, partnerships, and consumer-centric initiatives. Previously Chief Growth Officer and Chief Merchandising Officer. | View Report → |
Cara A. Sylvester Executive | Executive Vice President and Chief Guest Experience Officer | None reported. | Joined Target in 2014. Leads guest experience strategy, including digital tools and customer engagement. Previously Chief Marketing & Digital Officer. | |
Don H. Liu Executive | Executive Vice President, Chief Legal & Compliance Officer, and Corporate Secretary | None reported. | Joined Target in October 2017. Oversees legal, compliance, and risk management. Announced retirement in 2024 but remains in role until successor is appointed. | |
Jim Lee Executive | Executive Vice President and Chief Financial Officer (CFO) | Board Member at Tropicana Brands Group and Celsius Holdings. | Joined Target in September 2024. Previously Deputy CFO at PepsiCo. Oversees financial planning, accounting, and corporate development. | |
Matthew L. Zabel Executive | Executive Vice President and Chief Corporate Affairs Officer | None reported. | Joined Target in 2017. Oversees corporate affairs, including risk and employee relations. Previously EVP and General Counsel. | |
Melissa K. Kremer Executive | Executive Vice President and Chief Human Resources Officer | None reported. | Joined Target in 2004. Became CHRO in January 2019. Oversees human resources strategy and talent development. | |
Michael J. Fiddelke Executive | Executive Vice President, Chief Operating Officer (COO), and Chief Financial Officer (CFO) | None reported. | Joined Target in 2004. Became CFO in November 2019 and COO in February 2024. Oversees financial operations and operational strategies. | |
Monica C. Lozano Board | Lead Independent Director | Board Member at Apple Inc. and Bank of America Corporation; Board Member at Weingart Foundation. | Director since 2016. Provides expertise in governance, human capital management, and ESG. Former CEO of College Futures Foundation and ImpreMedia. | |
Robert L. Edwards Board | Director and Chair of the Audit & Risk Committee | None reported. | Director since 2015. Former CEO of Safeway Inc. Brings expertise in retail operations, financial management, and risk management. |
- Given the better-than-expected operating margin performance this quarter, can you elaborate on the specific drivers behind this improvement, and how sustainable are these factors in the face of ongoing cost pressures and a potentially more promotional environment?
- Despite improvements, discretionary categories still posted negative comps. What are the key challenges preventing these categories from returning to positive growth, and when do you anticipate an inflection point in discretionary spending?
- With the significant growth in your Food & Beverage business since the pandemic, how do you plan to manage the long-term mix of this category, and what impact does a higher proportion of lower-margin consumables have on your overall profitability?
- You mentioned progress in reducing inventory shrink ahead of expectations. Can you provide more details on the strategies implemented to combat shrink and how you plan to sustain these improvements, especially considering the industry-wide challenges related to theft and loss?
- Your after-tax return on invested capital (ROIC) increased to 16.6%, nearly 3 percentage points higher than last year. What specific initiatives contributed to this improvement, and how do you plan to maintain or enhance ROIC going forward in a potentially volatile economic environment?
Research analysts who have asked questions during TARGET earnings calls.
Michael Lasser
UBS
5 questions for TGT
Rupesh Parikh
Oppenheimer & Co. Inc.
4 questions for TGT
Christopher Horvers
JPMorgan Chase & Co.
3 questions for TGT
Edward Kelly
Wells Fargo
3 questions for TGT
Simeon Gutman
Morgan Stanley
3 questions for TGT
Karen Short
Melius Research
2 questions for TGT
Kate McShane
Goldman Sachs
2 questions for TGT
Katharine McShane
Goldman Sachs Group, Inc.
2 questions for TGT
Corey Tarlowe
Jefferies
1 question for TGT
Cristina Morales
Signum Research
1 question for TGT
Joseph Feldman
Telsey Advisory Group
1 question for TGT
Paul Lejuez
Citigroup
1 question for TGT
Robert Ohmes
Bank of America
1 question for TGT
Zhihan Ma
Bernstein
1 question for TGT
Recent press releases and 8-K filings for TGT.
- $30M Series B funding led by CAVU Consumer Partners with participation from Rocana, Midnight Ventures, Torch Capital and others to scale the business.
- Kyle Thomas, former Nutrabolt Global Chief Commercial Officer who grew C4 Energy to nearly $1 billion in sales, named President & Co-CEO to drive organizational and commercial expansion.
- Proceeds will be used to grow the team, expand retail distribution, and ramp up marketing for accelerated growth.
- Recess now generates 95%+ of sales from its magnesium-based Recess Mood line and its Zero Proof Craft Mocktails, and is sold in over 15,000 stores including Target, Kroger, and Whole Foods.
- Target will eliminate 1,800 corporate positions—including about 1,000 layoffs and 800 open roles—affecting roughly 8% of its corporate workforce; store and supply‐chain staff are unaffected.
- The cuts, concentrated at its Minneapolis headquarters, will simplify the organization, speed decision‐making and align priorities under incoming CEO Michael Fiddelke, who starts Feb. 1, 2025.
- This marks Target’s first major corporate layoffs in a decade; impacted employees will receive pay and benefits through early January plus severance and support services.
- The announcement comes amid stagnant comparable sales, competitive pressures, and a roughly 30% drop in Target shares in 2025, ahead of the critical holiday shopping season.
- On October 9, 2025, Target entered into a 364-Day Credit Agreement providing up to $1.0 billion of committed loans, with an accordion feature to increase capacity by $500 million, expiring October 8, 2026.
- Borrowings under the facility bear interest at a base rate or term SOFR plus an applicable margin tied to the loan type and Target’s debt ratings, and the agreement includes customary representations, warranties, affirmative and negative covenants, and a leverage ratio financial covenant.
- In connection with the new agreement, Target terminated its prior 364-Day Credit Agreement, which was scheduled to mature on October 14, 2025.
- Target will offer 20,000 new items—twice last year’s count—with over half exclusive, and thousands of gifts starting at $5.
- The retailer expands next-day delivery to consumers across 35 top U.S. metro areas (over half of the U.S. population) by the end of October, plus same-day service to 80% and two-day shipping to 99% of the population.
- Target Circle Week runs Oct. 5–11 with early access for paid members, followed by weekly holiday deals starting Nov. 1 and a daily “Deal of the Day” offering up to 50% off.
- K Wave Media will acquire a 55% stake in Rabbit Walk by issuing ₩9 billion KRW (~USD $6.5 million) of ordinary shares, with an additional ₩9 billion contingent on Rabbit Walk achieving >₩1.2 billion operating profit in 2025 or 2026.
- Rabbit Walk recorded $10.7 million revenue in 2024 (22% CAGR 2020–2024; 12–19% EBIT margin) and serves clients including Samsung Electronics, LG, TCL, and Hisense.
- KWM’s 2024 revenue was $58 million and, with this acquisition, the company expects revenues to grow 25–30% over the next 12 months.
- The deal expands KWM’s VFX, AI-powered advertising, and 3D content capacities and aligns with its vision to scale as a Web3 content producer and tokenize IP rights.
- Operational shortcomings: stores suffer stockouts, poor cleanliness, understaffing, signaling operations as a major issue after COO promotion
- COO promotion criticized: investors question elevating the operations head when store operations are deteriorating, contributing to a significant share price decline
- Strategic missteps: previous initiatives like PFresh grocery and Canadian expansion failed to differentiate from Walmart and were ultimately reversed
- Market position weakened: once considered a premium retailer ("Tarjay") in 2006, Target has fallen behind Walmart, Costco, Home Depot, Dick's Sporting Goods, and TJX in operational execution
- Target’s inventory levels are manageable, though units sold have declined and one‐time tariff costs have inflated inventory this quarter.
- Higher tariffs on incoming holiday goods are expected to drive retailers to raise prices, either in Q4 2025 or deferred into 2026.
- Net sales declined 0.9%, with comparable sales down 1.9%, store comps off 3.2%, digital comps up 4.3%, and GAAP & Adjusted EPS of $2.05.
- Retail ad business Roundel and Target Plus marketplace delivered double-digit net sales growth in Q2.
- Investing about $4 billion in FY2026 to support new stores, remodels, and supply chain and technology enhancements.
- Established an Enterprise Acceleration Office to speed decision-making by expanding modern tech tools and redesigning cross-functional processes.
- John San Marco expects home improvement retail to show positive growth this quarter, marking a cyclical improvement after three years since rates surged.
- He notes Home Depot’s decade-long build-out to serve professional customers has created new growth drivers that will shine as the cycle warms.
- San Marco warns Target has faced execution issues and, with a more discretionary mix, may encounter tougher competitive pressures in general merchandise.
- He views Walmart as resilient due to its scale and momentum, though Amazon’s grocery and rural bets present competitive risks.
- Retailers face tariffs averaging 20–25%, driving an anticipated 5–10% price increase in the back-to-school and holiday seasons.
- Target’s Q2 earnings are expected to be strong, but second-half guidance will be muted and conservative as it absorbs higher import costs.
- The end of the Target-Ulta partnership may limit brand availability, weaken store presentation and challenge Target’s appeal to higher-end shoppers.