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Target announced its financial results for the third quarter of 2024, noting strength in the digital channel as a main driver of sales growth.
Comparable sales increased 0.3% in Q3, with digital sales increasing by 10.8%, due to same-day delivery and curbside pickup services. The report also notes a 0.2% decrease in gross margin rate this quarter.
“I’m proud of our team’s efforts to navigate through a volatile operating environment during the third quarter. At the same time, we encountered some unique challenges and cost pressures that impacted our bottom-line performance,” says Brian Cornell, chair and chief executive officer of Target Corporation. “Looking ahead, our team is energized and ready to deliver the unique combination of newness and value that holiday shoppers can only find at Target, and we remain confident in the underlying strength and fundamentals of our business, and our ability to deliver on our longer-term financial goals.”
Operating income margin during Q3 was 4.6%, compared to 5.2% in Q3 2023. Third quarter gross margin rate was 27.2%, compared 27.4% in Q3 2023. Total revenue of the third quarter was $25.7 billion, 1.1% higher year over year.
Target looks ahead to the fourth quarter expecting approximately flat comparable sales.
