TARGET CORP has recently released its 10-Q report, providing an in-depth look at the company's financial performance and business operations. The company operates as a general merchandise retailer in the United States, offering a wide range of products including apparel, beauty products, food and beverage, electronics, home essentials, and more. In the second quarter of 2025, the company reported a decrease in net sales by 0.9% to $25.2 billion compared to the prior-year period. Comparable sales also decreased by 1.9%, driven by a 1.3% decrease in traffic and a 0.6% decrease in the average transaction amount.
The GAAP diluted earnings per share and Adjusted EPS were reported at $2.05. This marks a 20.2% decrease from the prior-year period. The operating income of $1.3 billion was 19.4% lower than the comparable prior-year period. The after-tax return on invested capital (ROIC) for the trailing twelve months ended August 2, 2025, was 14.3%, compared with 16.6% for the trailing twelve months ended August 3, 2024.
The company highlighted the impact of tariffs imposed by the U.S. government on products sourced from outside the U.S., particularly from China, which represents the largest source of imported merchandise. The company is closely monitoring the evolving consumer and regulatory landscape and adjusting plans as needed, including vendor negotiations, assortment changes, movements in the country of production, adjustments in order unit quantities and timing, and pricing strategies.
The gross margin rate for the three months ended August 2, 2025, was 29.0%, compared with 30.0% in the comparable prior-year period. The decrease was attributed to various factors including merchandising, changes in category sales mix, and lower inventory shrink. The selling, general, and administrative expense rate was 21.3% for the three months ended August 2, 2025, compared with 21.1% for the comparable prior-year period, reflecting the deleveraging impact of lower net sales.
In terms of store data, the company reported a total of 1,982 stores as of August 2, 2025, compared to 1,966 stores in the prior-year period. The company also provided information on net interest expense and the provision for income taxes, highlighting the impact of new legislation on U.S. corporate tax provisions enacted in July 2025.
As a result of these announcements, the company's shares have moved -0.86% on the market, and are now trading at a price of $95.98. Check out the company's full 10-Q submission here.
