Target Corporation stock research
FY2024 Q3
Target (TGT) Gross Margin — Quarter Ended Nov 2, 2024
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit was lower than the prior quarter but higher than a year ago, while cost of revenue was higher than both periods, resulting in a gross margin that weakened from the prior quarter and was slightly lower than the year-ago quarter.
Gross margin takeaway
Quarter ended Nov 2, 2024 · FY2024 Q3
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit was lower than the prior quarter but higher than a year ago, while cost of revenue was higher than both periods, resulting in a gross margin that weakened from the prior quarter and was slightly lower than the year-ago quarter.
- The primary observable driver was the increase in cost of revenue relative to revenue, which outpaced revenue growth and compressed gross margin.
- Compared to the immediately preceding quarter, gross margin weakened as cost of revenue rose more than revenue. Versus the same quarter one year earlier, gross margin was slightly lower, with cost of revenue increasing at a similar pace relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
28.3%
Gross profit
$7.3B
Revenue
$25.7B
Cost of revenue
$18.4B
Quarter-over-quarter change
-1.7 pts
Year-over-year change
-0.2 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 |
|---|---|---|---|---|
| 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% |
| Nov 2, 2024 | $25.7B | $7.3B | $18.4B | 28.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 3, 2024
-1.7 pts
Year-over-year change
Oct 28, 2023
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable driver was the increase in cost of revenue relative to revenue, which outpaced revenue growth and compressed gross margin.
Compared to the immediately preceding quarter, gross margin weakened as cost of revenue rose more than revenue. Versus the same quarter one year earlier, gross margin was slightly lower, with cost of revenue increasing at a similar pace relative to revenue.
Monitor the relationship between cost of revenue and revenue growth in upcoming quarters.