Target Corporation stock research
FY2023 Q4
Target (TGT) Gross Margin — Quarter Ended Feb 3, 2024
In the current quarter, revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved from the year-ago period but weakened from the immediately preceding quarter.
Gross margin takeaway
Quarter ended Feb 3, 2024 · FY2023 Q4
In the current quarter, revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin improved from the year-ago period but weakened from the immediately preceding quarter.
- The strongest observable driver is the change in cost of revenue relative to revenue. Compared to the prior year, cost of revenue decreased while revenue increased, supporting margin expansion; sequentially, cost of revenue grew more than revenue, compressing margin.
- Gross margin was higher than the same quarter one year earlier and lower than the previous quarter. Revenue and gross profit were higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
26.4%
Gross profit
$8.4B
Revenue
$31.9B
Cost of revenue
$23.5B
Quarter-over-quarter change
-2.1 pts
Year-over-year change
+2.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Apr 29, 2023 | $25.3B | $6.9B | $18.4B | 27.4% |
| Jul 29, 2023 | $24.8B | $7.0B | $17.8B | 28.2% |
| Oct 28, 2023 | $25.4B | $7.2B | $18.1B | 28.5% |
| Feb 3, 2024 | $31.9B | $8.4B | $23.5B | 26.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 28, 2023
-2.1 pts
Year-over-year change
Jan 28, 2023
+2.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver is the change in cost of revenue relative to revenue. Compared to the prior year, cost of revenue decreased while revenue increased, supporting margin expansion; sequentially, cost of revenue grew more than revenue, compressing margin.
Gross margin was higher than the same quarter one year earlier and lower than the previous quarter. Revenue and gross profit were higher in both comparisons.
Monitor the relationship between revenue growth and cost of revenue growth in upcoming quarters.