Target Q1 sales fall 2.8% on 53-week calendar shift; net income +10% on $593M settlement

Filed May 30, 2025 · Period ending May 3, 2025 · Compared to 10-Q May 31, 2024 · ~2 min read

Key Changes

• high

  Net income rose 10.0% to $1.04B (diluted EPS +11.8% to $2.27) despite a 2.8% revenue decline, driven entirely by a $593M one-time interchange fee settlement gain that boosted operating income 40%. Excluding the settlement, operating performance deteriorated.

  MD&A: Operating Results / Notes: Interchange Settlement verify on EDGAR →
• high

  Comparable sales fell 3.8% (traffic -2.4%, transaction amount -1.4%) as management cited tariff uncertainty, declining consumer confidence, reaction to January belonging-policy updates, and weak discretionary spending. The company cannot quantify each factor's impact.

  MD&A: Comparable Sales & Headwinds verify on EDGAR →
• high

  Inventory rose 11% YoY to $13.0B due to lower-than-expected sales in Apparel, Hardlines, and Home, reversing prior-year turnover improvements and signaling excess stock and potential future markdown pressure.

  MD&A: Inventory verify on EDGAR →