Target Corporation stock research
FY2024 Q1
Target (TGT) Gross Margin — Quarter Ended May 4, 2024
Revenue and gross profit were lower than the prior quarter, but gross margin improved as cost of revenue declined more sharply. Compared to the same quarter last year, revenue was slightly lower while gross profit and gross margin were higher.
Gross margin takeaway
Quarter ended May 4, 2024 · FY2024 Q1
Revenue and gross profit were lower than the prior quarter, but gross margin improved as cost of revenue declined more sharply. Compared to the same quarter last year, revenue was slightly lower while gross profit and gross margin were higher.
- The gross margin improvement was driven by a lower proportion of cost of revenue relative to revenue, as cost decreased more than revenue on a comparative basis.
- Sequentially, revenue and gross profit decreased while gross margin improved. Year-over-year, revenue was lower but gross profit and gross margin were higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.8%
Gross profit
$7.1B
Revenue
$24.5B
Cost of revenue
$17.5B
Quarter-over-quarter change
+2.4 pts
Year-over-year change
+1.4 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 |
|---|---|---|---|---|
| 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% |
| May 4, 2024 | $24.5B | $7.1B | $17.5B | 28.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Feb 3, 2024
+2.4 pts
Year-over-year change
Apr 29, 2023
+1.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by a lower proportion of cost of revenue relative to revenue, as cost decreased more than revenue on a comparative basis.
Sequentially, revenue and gross profit decreased while gross margin improved. Year-over-year, revenue was lower but gross profit and gross margin were higher.
Monitor the trend in cost of revenue as a percentage of revenue to assess whether the margin improvement can be sustained.