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Target recently announced financial results for the full year and fourth-quarter of 2024.
Total comparable sales increased 1.5% in the fourth quarter, reflecting a 0.5% decrease in comparable store sales. Net sales reached $30.9 billion, 3.1% lower in Q4 2024 than the previous year, which included an additional week of reporting.
Full year comparable sales increased 0.1% from 2023, reaching $106.6 billion. Full year operating income declined 2.5% from last year, reported at $5.6 billion. The Q4 operating income margin rate was 4.7% in 2024, down from 5.8% in 2023.
For the full year in 2025, Target expects to see net sales grow around 1% and flat net sales growth, as well as a modest increase in the operating margin rate.
Ongoing consumer uncertainty, a decline in February net sales and tariff uncertainty are factors Target expects to cause year-over-year profit pressure in Q1 2025.
“During February, we saw record performance around Valentines Day. However, our top-line performance for the month was soft, as uncharacteristically cold weather across the U.S. affected apparel sales and declining consumer confidence impacted our discretionary assortment overall,” says Jim Lee, Target chief financial officer. “Looking ahead, we expect to see a moderation in this trend as apparel sales respond to warmer weather around the country, and consumers turn to Target for upcoming seasonal moments such as the Easter holiday. We will continue to monitor these trends and will remain appropriately cautious with our expectations for the year ahead.”
