Target Corporation stock research
FY2024 Q2
Target (TGT) Gross Margin — Quarter Ended Aug 3, 2024
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose at a slower pace, leading to higher gross profit and an improved gross margin. The gross margin strengthened sequentially and year-over-year as revenue growth outpaced the change in cost of revenue.
Gross margin takeaway
Quarter ended Aug 3, 2024 · FY2024 Q2
Revenue increased compared to both the prior quarter and the same quarter last year, while cost of revenue rose at a slower pace, leading to higher gross profit and an improved gross margin. The gross margin strengthened sequentially and year-over-year as revenue growth outpaced the change in cost of revenue.
- The primary driver of the gross margin improvement was revenue growth that exceeded the increase in cost of revenue, both sequentially and year-over-year.
- Compared to the immediately preceding quarter, gross margin improved as revenue grew faster than cost of revenue. Versus the same quarter one year earlier, gross margin also improved, with revenue higher while cost of revenue remained essentially unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
30.0%
Gross profit
$7.6B
Revenue
$25.5B
Cost of revenue
$17.8B
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+1.8 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 |
|---|---|---|---|---|
| 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% |
| Aug 3, 2024 | $25.5B | $7.6B | $17.8B | 30.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 4, 2024
+1.2 pts
Year-over-year change
Jul 29, 2023
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the gross margin improvement was revenue growth that exceeded the increase in cost of revenue, both sequentially and year-over-year.
Compared to the immediately preceding quarter, gross margin improved as revenue grew faster than cost of revenue. Versus the same quarter one year earlier, gross margin also improved, with revenue higher while cost of revenue remained essentially unchanged.
Monitor cost of sales trends, as any acceleration in cost growth could pressure gross margin.