# EDGAR Filing Document

**Accession Number:** 0000027419
**File Stem:** 0000027419-25-000115
**Filing Date:** 2025-8
**Character Count:** 33755
**Document Hash:** 1f7ee73bc221652ba849f32a0447ea16
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000027419-25-000115.hdr.sgml**: 20250820

**ACCESSION NUMBER**: 0000027419-25-000115

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20250820

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20250820

**DATE AS OF CHANGE**: 20250820

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** TARGET CORP
- **CENTRAL INDEX KEY:** 0000027419
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-VARIETY STORES [5331]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 410215170
- **STATE OF INCORPORATION:** MN
- **FISCAL YEAR END:** 0201

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-06049
- **FILM NUMBER:** 251233815

**BUSINESS ADDRESS:**
- **STREET 1:** 1000 NICOLLET MALL
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55403
- **BUSINESS PHONE:** 6123046073

**MAIL ADDRESS:**
- **STREET 1:** 1000 NICOLLET MALL
- **CITY:** MINNEAPOLIS
- **STATE:** MN
- **ZIP:** 55403

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DAYTON HUDSON CORP
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DAYTON CORP
- **DATE OF NAME CHANGE:** 19690728

?xml version='1.0' encoding='ASCII'? tgt-20250820

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): **August 20, 2025** 

**Target Corporation** 

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Minnesota** | **1-6049** | **41-0215170** |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

---

| | | | |
|:---|:---|:---|:---|
| **1000 Nicollet Mall,** | **Minneapolis,** | **Minnesota** | **55403** |
| (Address of principal executive offices) | (Address of principal executive offices) | (Address of principal executive offices) | (Zip Code) |

---

---

| | | |
|:---|:---|:---|
| Registrant's telephone number, including area code: | **(612)** | **304-6073** |

---

**Not Applicable**

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| **Common stock, par value $0.0833 per share** | **TGT** | **New York Stock Exchange** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

------

**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Results of Operations and Financial Condition</u>.**

On August 20, 2025, Target Corporation issued a News Release containing its financial results for the three months ended August 2, 2025. The News Release is attached hereto as Exhibit 99.

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Financial Statements and Exhibits</u>.**

**<u>(d)</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Exhibits</u>.**

---

| | |
|:---|:---|
| 99 | <u>[Target Corporation's News Release dated](a2025q2ex-99.htm)[August 20](a2025q2ex-99.htm)[, 2025, containing its financial results for the three months ended](a2025q2ex-99.htm)[August 2](a2025q2ex-99.htm)[, 2025.](a2025q2ex-99.htm)</u> |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL). |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | TARGET CORPORATION | TARGET CORPORATION |
| Date: August 20, 2025 | By: | /s/ Jim Lee |
|  |  | Name: Jim Lee |
|  |  | Title: Executive Vice President and Chief Financial Officer |

---

## Ex-99

**Exhibit 99**

![releasebullseyeq419a.gif](releasebullseyeq419a.gif)<br>

**FOR IMMEDIATE RELEASE**

---

| | |
|:---|:---|
| **Contacts:** | John Hulbert, Investors, (612) 761-6627 |
|  | Joe Poulos, Media, (612) 696-3400 |

---

**Target Corporation Reports Second Quarter Earnings**

Target's Board of Directors unanimously appoints Michael Fiddelke to serve as Target's next CEO.

For additional details, please visit:

https://corporate.target.com/press/release/2025/08/target-appoints-michael-fiddelke-as-chief-executive-officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Second quarter net sales were $25.2 billion, (0.9) percent lower than 2024, representing a nearly 2 percentage point improvement versus the first quarter.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Traffic and sales trends improved meaningfully compared with the first quarter, particularly in stores.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *All six core merchandising categories saw comparable sales improvements compared with the first quarter.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ *Non-merchandise sales grew 14.2% with Roundel, membership and marketplace revenues all growing double digits.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Second quarter GAAP and Adjusted EPS*<sup>1</sup> *was $2.05, reflecting strong expense management and efficiency gains, helping to offset continued tariff-related and other cost pressures throughout the business.*

*For additional media materials, please visit:*

*https://corporate.target.com/news-features/article/2025/08/q2-2025-earnings*

**MINNEAPOLIS (August 20, 2025) –** Target Corporation (NYSE: TGT) today announced its second quarter 2025 financial results. The Company reported second quarter GAAP and Adjusted earnings per share<sup>1</sup> (EPS) of $2.05 compared with GAAP and Adjusted EPS of $2.57 in 2024. The attached tables provide a reconciliation of non-GAAP to GAAP measures. All earnings per share figures refer to diluted EPS.

– more –

<sup>1</sup>Adjusted diluted earnings per share (Adjusted EPS), a non-GAAP financial measure, excludes the impact of certain discretely managed items. See the tables of this release for additional information.<br>

------

*Target Corporation Reports Second Quarter Earnings — Page 2 of 12*

"With the board's unanimous decision to appoint Michael Fiddelke as Target's next CEO, I want to express my full confidence in his leadership and focus on driving improved results and sustainable growth. He's contributed meaningfully during times of change and played a critical role in establishing the differentiated capabilities that will continue to drive Target forward. Michael brings a deep understanding of our business and a genuine commitment to accelerating our progress," said Brian Cornell, chair and chief executive officer of Target Corporation. "Today, we also reported our second quarter earnings, which showed encouraging signs of recovery, including improved traffic and sales trends — particularly in our stores — and disciplined cost management in a challenging retail environment. As we enter the critical back-to-school and holiday seasons, our team remains focused on consistent execution and building momentum as we look ahead to the new year."

**Guidance**

For fiscal 2025, the Company is maintaining its expectation of a low-single digit decline in sales, and GAAP EPS of $8.00 to $10.00. Adjusted EPS, which excludes the gains from litigation settlements in the first quarter, is expected to be approximately $7.00 to $9.00.

**Operating Results**

Net Sales of $25.2 billion in the second quarter were 0.9 percent lower than last year, reflecting a merchandise sales decrease of 1.2 percent, partially offset by a 14.2 percent increase in non-merchandise sales. Comparable sales decreased 1.9 percent in the second quarter, reflecting a comparable store sales decline of 3.2 percent, partially offset by comparable digital sales growth of 4.3 percent. Second quarter operating income of $1.3 billion was 19.4 percent lower than last year.

– more –

------

*Target Corporation Reports Second Quarter Earnings — Page 3 of 12*

Second quarter operating income margin rate was 5.2 percent in 2025, compared with 6.4 percent in 2024. Second quarter gross margin rate was 29.0 percent, compared with 30.0 percent in 2024, reflecting the net impact of merchandising activities, including higher markdown rates, purchase order cancellation costs, and pressure from category mix, partially offset by lower inventory shrink and growth in advertising and non-merchandise sales. Second quarter SG&A expenses were 0.1 percent lower than in 2024, as increased investments in store remodels and general cost increases across the business were offset by disciplined cost management. Second quarter SG&A expense rate was 21.3 percent, compared with 21.1 percent in 2024, reflecting the deleveraging effect of lower sales.

**Interest Expense and Taxes**

The Company's second quarter 2025 net interest expense was $116 million, compared with $110 million last year, reflecting higher average debt levels in the current year.

Second quarter 2025 effective income tax rate was 23.2 percent, compared with the prior year rate of 22.9 percent, reflecting the impact of higher global minimum taxes.

**Capital Deployment and Return on Invested Capital**

The Company paid dividends of $509 million in the second quarter, compared with $509 million last year, reflecting a 1.8 percent increase in the dividend per share, offset by the impact of a lower average share count.

The Company did not repurchase any stock in the second quarter. As of the end of the quarter, the Company had approximately $8.4 billion of remaining capacity under the repurchase program approved by Target's Board of Directors in August 2021.

For the trailing twelve months through second quarter 2025, after-tax return on invested capital (ROIC) was 14.3 percent, compared with 16.6 percent for the trailing twelve months through second quarter 2024. The tables in this release provide additional information about the Company's ROIC calculation.

– more –

------

*Target Corporation Reports Second Quarter Earnings — Page 4 of 12*

**Webcast Details**

Target will webcast its second quarter earnings conference call at 7:00 a.m. CT today. Investors and the media are invited to listen to the meeting at Corporate.Target.com/Investors (click on "Q2 2025 Target Corporation Earnings Conference Call" under "Events & Presentations"). A replay of the webcast will be provided when available. The replay number is 1-800-396-1242.

**Miscellaneous**

Statements in this release regarding the Company's future financial performance, including its fiscal 2025 full-year guidance and expectations about management transitions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause the Company's results to differ materially. The most important risks and uncertainties are described in Item 1A of the Company's Form 10-K for the fiscal year ended February 1, 2025. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update any forward-looking statement.

**About Target**

Minneapolis-based Target Corporation (NYSE: TGT) serves guests at nearly 2,000 stores and at Target.com, with the purpose of helping all families discover the joy of everyday life. Since 1946, Target has given 5% of its profit to communities, which today equals millions of dollars a week. Additional company information can be found by visiting the corporate website (corporate.target.com) and press center.

\# \# \#

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*Target Corporation Reports Second Quarter Earnings — Page 5 of 12*

**TARGET CORPORATION**

**Consolidated Statements of Operations**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | Three Months Ended | Three Months Ended | | Six Months Ended | Six Months Ended | |
| **(millions, except per share data) (unaudited)** | August 2, 2025 | August 3, 2024 | Change | August 2, 2025 | August 3, 2024 | Change |
| Net sales | $25211 | $25452 | (0.9)% | 49057 | 49983 | (1.9)% |
| Cost of sales | 17903 | 17826 | 0.4 | 35031 | 35297 | (0.8) |
| Selling, general and administrative expenses | 5359 | 5365 | (0.1) | 9950 | 10511 | (5.3) |
| Depreciation and amortization (exclusive of depreciation included in cost of sales) | 632 | 626 | 0.9 | 1287 | 1244 | 3.4 |
| Operating income | 1317 | 1635 | (19.4) | 2789 | 2931 | (4.8) |
| Net interest expense | 116 | 110 | 6.3 | 232 | 216 | 7.5 |
| Net other income | (17) | (20) | (11.0) | (43) | (49) | (12.1) |
| Earnings before income taxes | 1218 | 1545 | (21.2) | 2600 | 2764 | (5.9) |
| Provision for income taxes | 283 | 353 | (19.9) | 629 | 630 | (0.2) |
| Net earnings | $935 | $1192 | (21.5)% | $1971 | $2134 | (7.6)% |
| Basic earnings per share | $2.06 | $2.58 | (20.2)% | $4.33 | $4.62 | (6.1)% |
| Diluted earnings per share | $2.05 | $2.57 | (20.2)% | $4.32 | $4.60 | (6.1)% |
| Weighted average common shares outstanding |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic | 454.6 | 462.5 | (1.7)% | 454.8 | 462.4 | (1.7)% |
| &nbsp;&nbsp;&nbsp;Diluted | 455.6 | 463.5 | (1.7)% | 456.1 | 463.7 | (1.6)% |
| Antidilutive shares | 5.0 | 2.3 |  | 2.3 | 1.8 |  |
| Dividends declared per share | $1.14 | $1.12 | 1.8% | $2.26 | $2.22 | 1.8% |

---

------

*Target Corporation Reports Second Quarter Earnings — Page 6 of 12*

**TARGET CORPORATION**

**Consolidated Statements of Financial Position**

---

| | | | |
|:---|:---|:---|:---|
| **(millions, except footnotes) (unaudited)** | August 2, 2025 | February 1, 2025 | August 3, 2024 |
| **Assets** |  |  |  |
| Cash and cash equivalents | $4341 | $4762 | $3497 |
| Inventory | 12881 | 12740 | 12604 |
| Other current assets | 1812 | 1952 | 1817 |
| &nbsp;&nbsp;&nbsp;Total current assets | 19034 | 19454 | 17918 |
| Property and equipment, net | 33568 | 33022 | 33075 |
| Operating lease assets | 3694 | 3763 | 3545 |
| Other noncurrent assets | 1555 | 1530 | 1457 |
| **Total assets** | $57851 | $57769 | $55995 |
| **Liabilities and shareholders' investment** |  |  |  |
| Accounts payable | $12019 | $13053 | $12595 |
| Accrued and other current liabilities | 6068 | 6110 | 5749 |
| Current portion of long-term debt and other borrowings | 1136 | 1636 | 1640 |
| &nbsp;&nbsp;&nbsp;Total current liabilities | 19223 | 20799 | 19984 |
| Long-term debt and other borrowings | 15320 | 14304 | 13654 |
| Noncurrent operating lease liabilities | 3514 | 3582 | 3444 |
| Deferred income taxes | 2413 | 2303 | 2495 |
| Other noncurrent liabilities | 1961 | 2115 | 1989 |
| &nbsp;&nbsp;&nbsp;Total noncurrent liabilities | 23208 | 22304 | 21582 |
| Shareholders' investment |  |  |  |
| &nbsp;&nbsp;&nbsp;Common stock | 38 | 38 | 38 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 7084 | 6996 | 6831 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 8766 | 8090 | 8030 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (468) | (458) | (470) |
| &nbsp;&nbsp;&nbsp;Total shareholders' investment | 15420 | 14666 | 14429 |
| **Total liabilities and shareholders' investment** | $57851 | $57769 | $55995 |

---

**Common Stock** Authorized 6,000,000,000 shares, $0.0833 par value; 454,396,092, 455,566,995, and 461,600,215 shares issued and outstanding as of August 2, 2025, February 1, 2025, and August 3, 2024, respectively.

**Preferred Stock** Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding during any period presented.

------

*Target Corporation Reports Second Quarter Earnings — Page 7 of 12*

**TARGET CORPORATION**

**Consolidated Statements of Cash Flows**

---

| | | |
|:---|:---|:---|
| | Six Months Ended | Six Months Ended |
| **(millions) (unaudited)** | August 2, 2025 | August 3, 2024 |
| **Operating activities** |  |  |
| Net earnings | $1971 | $2134 |
| Adjustments to reconcile net earnings to cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1558 | 1461 |
| &nbsp;&nbsp;&nbsp;Share-based compensation expense | 133 | 149 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | 112 | 16 |
| &nbsp;&nbsp;&nbsp;Noncash (gains) / losses and other, net | 1 | 22 |
| &nbsp;&nbsp;&nbsp;Changes in operating accounts: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | (141) | (718) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 151 | (53) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (1125) | 522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued and other liabilities | (302) | (194) |
| Cash provided by operating activities | 2358 | 3339 |
| **Investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Expenditures for property and equipment | (1864) | (1313) |
| &nbsp;&nbsp;&nbsp;Other | 11 | 8 |
| Cash required for investing activities | (1853) | (1305) |
| **Financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Additions to long-term debt | 1984 |  |
| &nbsp;&nbsp;&nbsp;Reductions of long-term debt | (1571) | (1076) |
| &nbsp;&nbsp;&nbsp;Dividends paid | (1019) | (1017) |
| &nbsp;&nbsp;&nbsp;Repurchase of stock | (258) | (155) |
| &nbsp;&nbsp;&nbsp;Shares withheld for taxes on share-based compensation | (62) | (94) |
| Cash required for financing activities | (926) | (2342) |
| Net decrease in cash and cash equivalents | (421) | (308) |
| Cash and cash equivalents at beginning of period | 4762 | 3805 |
| **Cash and cash equivalents at end of period** | $4341 | $3497 |

---

------

*Target Corporation Reports Second Quarter Earnings — Page 8 of 12*

**TARGET CORPORATION**

**Operating Results**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Net Sales** | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended |
| <br>**(millions) (unaudited)** | August 2, 2025 | August 3, 2024 | August 2, 2025 | August 3, 2024 |
| Apparel & accessories | $4086 | $4261 | $7797 | $8158 |
| Beauty | 3396 | 3384 | 6498 | 6503 |
| Food & beverage | 5588 | 5538 | 11490 | 11391 |
| Hardlines | 3522 | 3322 | 6597 | 6482 |
| Home furnishings & décor | 3662 | 3908 | 6880 | 7427 |
| Household essentials | 4422 | 4564 | 8779 | 9113 |
| Other merchandise sales | 43 | 44 | 83 | 90 |
| &nbsp;&nbsp;&nbsp;Merchandise sales | 24719 | 25021 | 48124 | 49164 |
| Advertising revenue <sup>(a)</sup> | 217 | 162 | 379 | 292 |
| Credit card profit sharing | 134 | 144 | 275 | 286 |
| Other | 141 | 125 | 279 | 241 |
| Net sales | $25211 | $25452 | $49057 | $49983 |

---

<sup>(a)</sup>Primarily represents revenue related to advertising services provided via the Company's Roundel digital advertising business offering. Roundel services are classified as either Net Sales or as a reduction of Cost of Sales or Selling, General, and Administrative (SG&A) Expenses, depending on the nature of the advertising arrangement.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Rate Analysis** | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended |
| **(unaudited)** | August 2, 2025 | August 3, 2024 | August 2, 2025 | August 3, 2024 |
| Gross margin rate <sup>(a)</sup> | 29.0% | 30.0% | 28.6% | 29.4% |
| SG&A expense rate <sup>(a)(b)</sup> | 21.3 | 21.1 | 20.3 | 21.0 |
| Depreciation and amortization expense rate (exclusive of depreciation included in cost of sales) | 2.5 | 2.5 | 2.6 | 2.5 |
| Operating income margin rate <sup>(b)</sup> | 5.2 | 6.4 | 5.7 | 5.9 |

---

Note: Gross margin is calculated as Net Sales less Cost of Sales. All rates are calculated by dividing the applicable amount by Net Sales.

<sup>(a)</sup>&nbsp;&nbsp;&nbsp;&nbsp;Reflects the impact of a reclassification of prior year amounts, which were not material, to conform with current year presentation. The reclassifications increased Cost of Sales with equal and offsetting decreases to SG&A Expenses.

<sup>(b)</sup>&nbsp;&nbsp;&nbsp;&nbsp;SG&A Expenses and Operating Income for the six months ended August 2, 2025, includes gains, net of legal fees, related to settlements during the first quarter of 2025 of credit card interchange fee litigation matters in which the Company was a plaintiff.

------

*Target Corporation Reports Second Quarter Earnings — Page 9 of 12*

**Sales Metrics**

Comparable sales include all Merchandise Sales, except sales from stores open less than 13 months or that have been closed. Digitally originated sales include all Merchandise Sales initiated through mobile applications and the Company's websites.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Comparable Sales** | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended |
| **(unaudited)** | August 2, 2025 | August 3, 2024 | August 2, 2025 | August 3, 2024 |
| Comparable sales change | (1.9)% | 2.0% | (2.8)% | (0.9)% |
| Drivers of change in comparable sales |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Number of transactions (traffic) | (1.3) | 3.0 | (1.8) | 0.6 |
| &nbsp;&nbsp;&nbsp;Average transaction amount | (0.6) | (0.9) | (1.0) | (1.4) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Comparable Sales by Channel** | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended |
| **(unaudited)** | August 2, 2025 | August 3, 2024 | August 2, 2025 | August 3, 2024 |
| Stores originated comparable sales change | (3.2)% | 0.7% | (4.4)% | (2.1)% |
| Digitally originated comparable sales change | 4.3 | 8.7 | 4.5 | 5.0 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Sales by Channel** | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended |
| **(unaudited)** | August 2, 2025 | August 3, 2024 | August 2, 2025 | August 3, 2024 |
| Stores originated | 81.1% | 82.1% | 80.7% | 81.9% |
| Digitally originated | 18.9 | 17.9 | 19.3 | 18.1 |
| Total | 100% | 100% | 100% | 100% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Sales by Fulfillment Channel** | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended |
| **(unaudited)** | August 2, 2025 | August 3, 2024 | August 2, 2025 | August 3, 2024 |
| Stores | 97.7% | 97.9% | 97.7% | 97.8% |
| Other | 2.3 | 2.1 | 2.3 | 2.2 |
| Total | 100% | 100% | 100% | 100% |

---

Note: Sales fulfilled by stores include in-store purchases and digitally originated sales fulfilled by shipping merchandise from stores to guests, Order Pickup, Drive Up, and Same Day Delivery.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Target Circle Card Penetration** | Three Months Ended | Three Months Ended | Six Months Ended | Six Months Ended |
| **(unaudited)** | August 2, 2025 | August 3, 2024 | August 2, 2025 | August 3, 2024 |
| Total Target Circle Card Penetration | 16.9% | 17.7% | 17.1% | 17.9% |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Number of Stores and Retail Square Feet** | Number of Stores | Number of Stores | Number of Stores | Retail Square Feet <sup>(a)</sup> | Retail Square Feet <sup>(a)</sup> | Retail Square Feet <sup>(a)</sup> |
| **(unaudited)** | August 2,<br>2025 | February 1,<br>2025 | August 3,<br>2024 | August 2,<br>2025 | February 1,<br>2025 | August 3,<br>2024 |
| 170,000 or more sq. ft. | 273 | 273 | 273 | 48824 | 48824 | 48824 |
| 50,000 to 169,999 sq. ft. | 1562 | 1559 | 1549 | 195436 | 195050 | 193705 |
| 49,999 or less sq. ft. | 147 | 146 | 144 | 4445 | 4404 | 4334 |
| Total | 1982 | 1978 | 1966 | 248705 | 248278 | 246863 |

---

<sup>(a)</sup>In thousands; reflects total square feet less office, supply chain facility, and vacant space.

------

*Target Corporation Reports Second Quarter Earnings — Page 10 of 12*

**TARGET CORPORATION**

**Reconciliation of Non-GAAP Financial Measures**

To provide additional transparency, we disclose non-GAAP adjusted diluted earnings per share (Adjusted EPS). This metric excludes certain items presented below. We believe this information is useful in providing period-to-period comparisons of the results of our operations. This measure is not in accordance with, or an alternative to, generally accepted accounting principles in the U.S. (GAAP). The most comparable GAAP measure is diluted earnings per share. Adjusted EPS should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP. Other companies may calculate Adjusted EPS differently, limiting the usefulness of the measure for comparisons with other companies.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reconciliation of Non-GAAP<br>Adjusted EPS** | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended | Three Months Ended |  |
| **Reconciliation of Non-GAAP<br>Adjusted EPS** | August 2, 2025 | August 2, 2025 | August 2, 2025 | August 3, 2024 | August 3, 2024 | August 3, 2024 |  |
| **(millions, except per share data) (unaudited)** | Pretax | Net of Tax | Per Share | Pretax | Net of Tax | Per Share | Change |
| GAAP and Adjusted EPS |  |  | $2.05 |  |  | $2.57 | (20.2)% |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Reconciliation of Non-GAAP<br>Adjusted EPS** | Six Months Ended | Six Months Ended | Six Months Ended | Six Months Ended | Six Months Ended | Six Months Ended |  |
| **Reconciliation of Non-GAAP<br>Adjusted EPS** | August 2, 2025 | August 2, 2025 | August 2, 2025 | August 3, 2024 | August 3, 2024 | August 3, 2024 |  |
| **(millions, except per share data) (unaudited)** | Pretax | Net of Tax | Per Share | Pretax | Net of Tax | Per Share | Change |
| GAAP diluted EPS |  |  | $4.32 |  |  | $4.60 | (6.1)% |
| Adjustments |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interchange fee settlements <sup>(a)</sup> | $(593) | $(441) | $(0.97) | $— | $— | $— |  |
| Adjusted EPS |  |  | $3.35 |  |  | $4.60 | (27.1)% |

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<sup>(a)</sup>&nbsp;&nbsp;&nbsp;&nbsp;Note (b) to the Rate Analysis table provides additional information.

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| | |
|:---|:---|
| **Reconciliation of Non-GAAP<br>Adjusted EPS Guidance** | |
| **(per share) (unaudited)** | Full Year 2025 |
| GAAP diluted earnings per share guidance | $8.00 - $10.00 |
| Estimated adjustments |  |
| &nbsp;&nbsp;&nbsp;Interchange fee settlements | ($0.97) |
| &nbsp;&nbsp;&nbsp;Other <sup>(a)</sup> |  |
| Adjusted diluted earnings per share guidance | ~$7.00 - $9.00 |

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<sup>(a)</sup>Full-year 2025 GAAP EPS may include the impact of additional discrete items, which will be excluded in calculating Adjusted EPS. The guidance does not currently reflect any such additional discrete items. In the past, these items have included losses on the early retirement of debt and certain other items that are discretely managed.

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*Target Corporation Reports Second Quarter Earnings — Page 11 of 12*

Earnings before interest expense and income taxes (EBIT) and earnings before interest expense, income taxes, depreciation and amortization (EBITDA) are non-GAAP financial measures. We believe these measures provide meaningful information about our operational efficiency compared with our competitors by excluding the impact of differences in tax jurisdictions and structures, debt levels, and, for EBITDA, capital investment. These measures are not in accordance with, or an alternative to, GAAP. The most comparable GAAP measure is net earnings. EBIT and EBITDA should not be considered in isolation or as a substitution for analysis of our results as reported in accordance with GAAP. Other companies may calculate EBIT and EBITDA differently, limiting the usefulness of the measures for comparisons with other companies.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **EBIT and EBITDA** | Three Months Ended | Three Months Ended |  | Six Months Ended | Six Months Ended |  |
| **(dollars in millions) (unaudited)** | August 2, 2025 | August 3, 2024 | Change | August 2, 2025 | August 3, 2024 | Change |
| Net earnings | $935 | $1192 | (21.5)% | $1971 | $2134 | (7.6)% |
| + Provision for income taxes | 283 | 353 | (19.9) | 629 | 630 | (0.2) |
| + Net interest expense | 116 | 110 | 6.3 | 232 | 216 | 7.5 |
| EBIT | $1334 | $1655 | (19.3)% | $2832 | $2980 | (5.0)% |
| + Total depreciation and amortization <sup>(a)</sup> | 770 | 743 | 3.6 | 1558 | 1461 | 6.6 |
| EBITDA | $2104 | $2398 | (12.2)% | $4390 | $4441 | (1.2)% |

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<sup>(a)</sup>Represents total depreciation and amortization, including amounts classified within Depreciation and Amortization and within Cost of Sales.

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*Target Corporation Reports Second Quarter Earnings — Page 12 of 12*

We have also disclosed after-tax ROIC, which is a ratio based on GAAP information, with the exception of the add-back of operating lease interest to operating income. We believe this metric is useful in assessing the effectiveness of our capital allocation over time. Other companies may calculate ROIC differently, limiting the usefulness of the measure for comparisons with other companies.

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| | | |
|:---|:---|:---|
| **After-Tax Return on Invested Capital** | **After-Tax Return on Invested Capital** | **After-Tax Return on Invested Capital** |
| **(dollars in millions) (unaudited)** | | |
|  | Trailing Twelve Months | Trailing Twelve Months |
| ***Numerator*** | August 2, 2025 | August 3, 2024 <sup>(a)</sup> |
| Operating income | $5425 | $6113 |
|  + Net other income | 99 | 102 |
| EBIT | 5524 | 6215 |
| + Operating lease interest <sup>(b)</sup> | 166 | 146 |
| **-** Income taxes <sup>(c)</sup> | 1305 | 1427 |
| **Net operating profit after taxes** | $**4385** | $**4934** |

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| | | | |
|:---|:---|:---|:---|
| ***Denominator*** | August 2, 2025 | August 3, 2024 | July 29, 2023 |
| Current portion of long-term debt and other borrowings | $1136 | $1640 | $1106 |
| + Noncurrent portion of long-term debt | 15320 | 13654 | 14926 |
| + Shareholders' investment | 15420 | 14429 | 11990 |
| + Operating lease liabilities <sup>(d)</sup> | 3883 | 3786 | 3104 |
| **-** Cash and cash equivalents | 4341 | 3497 | 1617 |
| Invested capital | $31418 | $30012 | $29509 |
| **Average invested capital** <sup>(e)</sup> | $**30715** | $**29760** |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **After-tax return on invested capital** <sup>(f)</sup> | **14.3** | **%** | **16.6** | **%** |

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<sup>(a)</sup>The trailing twelve months ended August 3, 2024, consisted of 53 weeks compared with 52 weeks in the current-year period.

<sup>(b)</sup>Represents the add-back to operating income driven by the hypothetical interest expense we would incur if the property under our operating leases was owned or accounted for under finance leases. Calculated using the discount rate for each lease and recorded as a component of rent expense within Operating Income. Operating lease interest is added back to Operating Income in the ROIC calculation to control for differences in capital structure between us and our competitors.

<sup>(c)</sup>Calculated using the effective tax rates, which were 22.9 percent and 22.4 percent for the trailing twelve months ended August 2, 2025, and August 3, 2024, respectively. For the twelve months ended August 2, 2025, and August 3, 2024, includes tax effect of $1.3 billion and $1.4 billion, respectively, related to EBIT, and $38 million and $33 million, respectively, related to operating lease interest.

<sup>(d)</sup>Total short-term and long-term operating lease liabilities included within Accrued and Other Current Liabilities and Noncurrent Operating Lease Liabilities, respectively.

<sup>(e)</sup>Average based on the invested capital at the end of the current period and the invested capital at the end of the comparable prior period.

<sup>(f)</sup>For the trailing twelve months ended August 2, 2025, includes the impact of after-tax net gains on interchange fee settlements, which increased after-tax ROIC by 1.4 percentage points. Note (b) to the Rate Analysis table provides additional information.

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