Target — Aug 20, 2025 release

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