Target Corporation — research brief (BMC #097 on gallery, queue id 181)

Prepared 2026-10-12/13 (America/Chicago). Target Corporation is public (NYSE: TGT), headquartered in Minneapolis, and reports in US dollars on a fiscal year ending around Jan 31. FY2025 = 52 weeks ended Jan 31, 2026 (the latest full year), labeled with Target's own fiscal year per the project's fiscal-year rule. Labels: FACT = stated by Target in its Form 10-K or results releases filed with the SEC. SECONDARY = third-party press (none used). INFERENCE = interpretation or arithmetic by this project.

Sources (accessed 2026-10-12)

Form 10-K for fiscal 2025 (year ended Jan 31, 2026; filed Mar 11, 2026): https://www.sec.gov/Archives/edgar/data/27419/000002741926000016/tgt-20260131.htm
Fourth quarter and full-year 2025 results release (Mar 3, 2026, Form 8-K Ex. 99): https://www.sec.gov/Archives/edgar/data/27419/000002741926000012/a2025q4ex-99.htm
Second quarter 2026 results release (Aug 19, 2026, Form 8-K Ex. 99): https://www.sec.gov/Archives/edgar/data/27419/000002741926000034/a2026q2ex-99.htm
Corporate site: https://corporate.target.com
Logo: project monogram ("TG" on a red tile), not Target's official Bullseye logo. Trademark of its owner; identification only.

Teaching arc

Target is a U.S. big-box retailer that sells national brands and its own owned brands (~30% of merchandise sales) through 1,995 stores that double as fulfillment hubs (97.6% of merchandise sales fulfilled by stores). Around that thin-margin store sale it layers higher-margin income: Roundel retail-media ads, a profit share on the TD Bank-funded Target Circle Card, Target Circle 360 and Shipt memberships, and Target Plus marketplace commissions. FY2025 net sales $104.8B (−1.7%), net earnings $3.71B (−9.4%).

Key figures, FY2025 (FACT unless labeled)

Net sales $104,780M vs $106,566M (−1.7%); FY2023 $107.4B (53 weeks).
Merchandise sales $102,717M: food & beverage $24,136M; household essentials $18,017M; hardlines $15,800M; apparel & accessories $15,737M; home furnishings & décor $15,608M; beauty $13,214M; other $205M.
Non-merchandise: advertising revenue $915M (vs $649M; mainly Roundel); credit card profit sharing $522M (vs $576M); other $626M (vs $521M; Target Plus commissions, Target Circle 360 membership, Shipt membership and service revenue, rental income). Total $2,063M, ~+18% (INFERENCE: arithmetic).
Comparable sales −2.6% (transactions −2.2%, ticket −0.4%); stores-originated comps −4.0%, digital +3.1%. Stores-originated 79.4% / digitally originated 20.6% of merchandise sales; stores fulfilled 97.6%.
Gross margin $29,269M (27.9% vs 28.2%); cost of sales $75,511M; SG&A $21,535M (20.6%); D&A excl. COGS $2,617M.
Operating income $5,117M (4.9%, −8.1%) incl. $593M interchange-fee settlement gains and $250M business transformation costs; adjusted operating income (non-GAAP) $4,775M (4.6%).
Net interest expense $445M; effective tax rate 22.3%.
FY2025 net earnings $3,705M (vs $4,091M, −9.4%); diluted EPS $8.13 (adjusted $7.57).
Cash flow: operations $6,562M; capex $3,727M; dividends $2,053M; buybacks $408M. After-tax ROIC 13.8%.
Balance sheet Jan 31, 2026: total assets $59,490M; property & equipment $33,749M; inventory $12,304M; cash $5,488M; long-term debt $14,326M (+$2,130M current).
Advertising costs (net of vendor reimbursements) $1.5B in both 2025 and 2024.
Q4 FY2025: non-merchandise sales +25%+, membership revenue more than doubled, Roundel double-digit growth, marketplace +30%+, same-day delivery powered by Target Circle 360 +30%+.

Footprint & people (FACT)

1,995 stores (250.5M retail sq ft) in 50 states + DC: 1,546 owned, 288 leased, 161 owned buildings on leased land; 18 new stores in 2025.
70 supply chain facilities (distribution, sortation and other; 72.9M sq ft).
~415,000 full-time, part-time and seasonal team members (Jan 31, 2026); workforce is the largest operating expense; Shipt uses independent contractors.

Model details (FACT)

~30% of merchandise sales from owned and exclusive brands (40+ owned brands listed, e.g. Good & Gather, Cat & Jack, Threshold, up & up, Hearth & Hand with Magnolia), generally higher margin than national brands.
~half of merchandise sourced outside the U.S. (China largest); global sourcing offices in 13 countries; Target is importer of record for most owned and exclusive brands.
Vendor income (volume rebates, promotions, advertising, markdown allowances) mostly reduces cost of sales; $542M receivable at Jan 31, 2026.
Target Circle: free tier (deals, rewards); Target Circle Cards (debit, credit, Mastercard) with 5% off nearly all purchases, free standard and 2-day shipping, extended returns; paid Target Circle 360 with unlimited same-day delivery on orders over $35 from Target and other retailers. Membership prices not stated in the 10-K, so not shown.
TD Bank Group underwrites, funds and owns Target Circle credit card receivables; Target services accounts and markets the card for a percentage of profits.
CVS operates pharmacies and clinics in Target stores under a perpetual agreement (occupancy income); Starbucks and Target Optical in-store amenities; shop-in-shops with Apple, Levi's; Ulta Beauty shop-in-shop agreement ends Aug 2026.
Roundel: advertising services to vendors and third parties incl. marketplace sellers; Precision Plus by Roundel launched 2025. Target Plus: third-party digital marketplace.

Latest part-year (FACT; not annualized)

Q2 2026 (quarter ended Aug 1, 2026): net sales $26,539M (+5.3%), comparable sales +3.8% (traffic +3.6%; stores +2.7%, digital +8.7%), non-merchandise sales +20.1%, net earnings $1,877M incl. $994M pretax IEEPA tariff refunds. H1 2026 net sales $51,982M (+6.0%), net earnings $2,658M.
FY2026 guidance: net sales growth around 5%; GAAP and adjusted EPS $9.90–$10.90 incl. ~$1.65 of tariff refunds.

Atlas main engine

retail/DTC — 98% of net sales is merchandise sold in its own stores and digital channels; ads, card profit share and memberships are add-ons.

# Target Corporation — research brief (BMC #097 on gallery, queue id 181) Prepared 2026-10-12/13 (America/Chicago). Target Corporation is **public** (NYSE: TGT), headquartered in Minneapolis, and reports in US dollars on a **fiscal year ending around Jan 31**. **FY2025 = 52 weeks ended Jan 31, 2026** (the latest full year), labeled with Target's own fiscal year per the project's fiscal-year rule. Labels: **FACT** = stated by Target in its Form 10-K or results releases filed with the SEC. **SECONDARY** = third-party press (none used). **INFERENCE** = interpretation or arithmetic by this project. ## Sources (accessed 2026-10-12) - Form 10-K for fiscal 2025 (year ended Jan 31, 2026; filed Mar 11, 2026): https://www.sec.gov/Archives/edgar/data/27419/000002741926000016/tgt-20260131.htm - Fourth quarter and full-year 2025 results release (Mar 3, 2026, Form 8-K Ex. 99): https://www.sec.gov/Archives/edgar/data/27419/000002741926000012/a2025q4ex-99.htm - Second quarter 2026 results release (Aug 19, 2026, Form 8-K Ex. 99): https://www.sec.gov/Archives/edgar/data/27419/000002741926000034/a2026q2ex-99.htm - Corporate site: https://corporate.target.com - Logo: project monogram ("TG" on a red tile), **not** Target's official Bullseye logo. Trademark of its owner; identification only. ## Teaching arc **Target is a U.S. big-box retailer that sells national brands and its own owned brands (~30% of merchandise sales) through 1,995 stores that double as fulfillment hubs (97.6% of merchandise sales fulfilled by stores). Around that thin-margin store sale it layers higher-margin income: Roundel retail-media ads, a profit share on the TD Bank-funded Target Circle Card, Target Circle 360 and Shipt memberships, and Target Plus marketplace commissions. FY2025 net sales $104.8B (−1.7%), net earnings $3.71B (−9.4%).** ## Key figures, FY2025 (FACT unless labeled) - **Net sales $104,780M** vs $106,566M (**−1.7%**); FY2023 $107.4B (53 weeks). - Merchandise sales $102,717M: food & beverage $24,136M; household essentials $18,017M; hardlines $15,800M; apparel & accessories $15,737M; home furnishings & décor $15,608M; beauty $13,214M; other $205M. - Non-merchandise: advertising revenue $915M (vs $649M; mainly Roundel); credit card profit sharing $522M (vs $576M); other $626M (vs $521M; Target Plus commissions, Target Circle 360 membership, Shipt membership and service revenue, rental income). Total $2,063M, ~+18% (INFERENCE: arithmetic). - Comparable sales −2.6% (transactions −2.2%, ticket −0.4%); stores-originated comps −4.0%, digital +3.1%. Stores-originated 79.4% / digitally originated 20.6% of merchandise sales; stores fulfilled 97.6%. - Gross margin $29,269M (27.9% vs 28.2%); cost of sales $75,511M; SG&A $21,535M (20.6%); D&A excl. COGS $2,617M. - **Operating income $5,117M** (4.9%, −8.1%) incl. $593M interchange-fee settlement gains and $250M business transformation costs; adjusted operating income (non-GAAP) $4,775M (4.6%). - Net interest expense $445M; effective tax rate 22.3%. - **FY2025 net earnings $3,705M** (vs $4,091M, −9.4%); diluted EPS $8.13 (adjusted $7.57). - Cash flow: operations $6,562M; capex $3,727M; dividends $2,053M; buybacks $408M. After-tax ROIC 13.8%. - Balance sheet Jan 31, 2026: total assets $59,490M; property & equipment $33,749M; inventory $12,304M; cash $5,488M; long-term debt $14,326M (+$2,130M current). - Advertising costs (net of vendor reimbursements) $1.5B in both 2025 and 2024. - Q4 FY2025: non-merchandise sales +25%+, membership revenue more than doubled, Roundel double-digit growth, marketplace +30%+, same-day delivery powered by Target Circle 360 +30%+. ## Footprint & people (FACT) - 1,995 stores (250.5M retail sq ft) in 50 states + DC: 1,546 owned, 288 leased, 161 owned buildings on leased land; 18 new stores in 2025. - 70 supply chain facilities (distribution, sortation and other; 72.9M sq ft). - ~415,000 full-time, part-time and seasonal team members (Jan 31, 2026); workforce is the largest operating expense; Shipt uses independent contractors. ## Model details (FACT) - ~30% of merchandise sales from owned and exclusive brands (40+ owned brands listed, e.g. Good & Gather, Cat & Jack, Threshold, up & up, Hearth & Hand with Magnolia), generally higher margin than national brands. - ~half of merchandise sourced outside the U.S. (China largest); global sourcing offices in 13 countries; Target is importer of record for most owned and exclusive brands. - Vendor income (volume rebates, promotions, advertising, markdown allowances) mostly reduces cost of sales; $542M receivable at Jan 31, 2026. - Target Circle: free tier (deals, rewards); Target Circle Cards (debit, credit, Mastercard) with 5% off nearly all purchases, free standard and 2-day shipping, extended returns; paid Target Circle 360 with unlimited same-day delivery on orders over $35 from Target and other retailers. Membership prices not stated in the 10-K, so not shown. - TD Bank Group underwrites, funds and owns Target Circle credit card receivables; Target services accounts and markets the card for a percentage of profits. - CVS operates pharmacies and clinics in Target stores under a perpetual agreement (occupancy income); Starbucks and Target Optical in-store amenities; shop-in-shops with Apple, Levi's; Ulta Beauty shop-in-shop agreement ends Aug 2026. - Roundel: advertising services to vendors and third parties incl. marketplace sellers; Precision Plus by Roundel launched 2025. Target Plus: third-party digital marketplace. ## Latest part-year (FACT; not annualized) - Q2 2026 (quarter ended Aug 1, 2026): net sales $26,539M (+5.3%), comparable sales +3.8% (traffic +3.6%; stores +2.7%, digital +8.7%), non-merchandise sales +20.1%, net earnings $1,877M incl. $994M pretax IEEPA tariff refunds. H1 2026 net sales $51,982M (+6.0%), net earnings $2,658M. - FY2026 guidance: net sales growth around 5%; GAAP and adjusted EPS $9.90–$10.90 incl. ~$1.65 of tariff refunds. ## Atlas main engine - **retail/DTC** — 98% of net sales is merchandise sold in its own stores and digital channels; ads, card profit share and memberships are add-ons.