On this page of StockholderLetter.com we present the 5/1/2023 shareholder letter from TARGET CORP — ticker symbol TGT. Reading current and past TGT letters to shareholders can bring important insights into the investment thesis.
Annual Report 2022
Welcome to our 2022 Annual Report To explore key stories of the past year and find out what s ahead, visit corporate.target.com. You can view our Annual Report online at target.com/annualreport. Financial Highlights (Note: Reflects amounts attributable to continuing operations. 2017 was a 53-week year.) $106,005 $109,120 $4,224 $4,110 $4,658 $6,539 $8,946 $3,848 $2,908 $2,930 $3,269 $4,368 $6,946 $2,780 $5.29 $5.50 $6.34 $8.64 $14.10 $5.98 Diluted EPS $93,561 In Millions $78,112 Net Earnings In Millions $75,356 Operating Income In Millions $72,714 Total Revenue 17 18 19 20 21 22 17 18 19 20 21 22 17 18 19 20 21 22 17 18 19 20 21 22 2022 Growth: 2.9% Five-year CAGR: 8.5% 2022 Growth: 57.0% Five-year CAGR: 1.8% 2022 Growth: 60.0% Five-year CAGR: 0.9% 2022 Growth: 57.6% Five-year CAGR: 2.5% Total 2022 Sales: $107,588 Million 28% 21% 18% 17% 16% Beauty & Household Essentials Food & Beverage Home Furnishings & D cor Hardlines Apparel & Accessories
Letter to Shareholders Anchoring to new excellence The model we laid out in 2019, before the pandemic, was to grow total revenue steadily in the mid-single digits, and to translate that into accelerated growth in operating income and earnings per share. In broad strokes, after we recover from the unique and significant profit headwinds we faced in 2022, we believe that this remains the right trajectory for Target in the long term. However, a couple of variables in the model have changed significantly for the better. First, the revenue gains we anticipate in the years ahead will be built on a base of nearly $110 billion, not the $78 billion that served as our starting mark in 2019. Second, with the new scale of our business and the continuing maturation of capabilities that barely existed three years ago, we see tremendous opportunities to streamline and simplify how we run Target. Dear shareholders, Steady stewardship has always been a hallmark of our growth philosophy. Deliver what guests want and need today while anticipating where they re headed tomorrow. Invest vigorously in the team, strategy and capabilities to stay in step with guests. Grow steadily. Grow profitably. And harvest the benefits of increasing scale to build on these efforts perpetually. This discipline and alignment have produced continuous growth through a wide range of business environments, with ample opportunity still ahead of us. But not all of our recent growth has been steady. In the core pandemic years of 2020 and 2021, we spiked to never-before-seen growth rates that stretched our model to new limits. Our team was able to support that unexpected growth because the fundamentals were in place, and we carefully stewarded capital, capabilities and above all our connection to guests in an extraordinary moment for our company. Even in 2022, with constrained consumer demand and massive shifts in buying behaviors, we grew by more than $3 billion. Today, Target is more than $30 billion bigger than it was in 2019. Consistently trusted A significant part of this growth has been driven by traffic. Last year s traffic gain of 2.1% marked the sixth straight year of growth in this key metric. It demonstrates that even as guests day-to-day needs fluctuate often rapidly and dramatically they re turning to Target more and more for everything they want and need. That speaks to the trust and loyalty we re continuously building with our guests. Regardless of era or environment, our team takes a lot of pride in being able to flex into the merchandise categories and channels that are most relevant to guests and then being able to flex again when things change. For instance, last year, comp sales in frequency categories like food & beverage, essentials and beauty grew quickly as guests on tighter budgets prioritized basics. But while navigating high inflation and rapidly rising interest rates, guests still looked to us for their discretionary choices, purchasing nearly $55 billion in apparel, home and hardlines in 2022. This flexibility and focus on guests consistently delivers growth whether in the pre-pandemic years of 2017 2019, or in the peak of the pandemic, or in this still-unfolding transitional timeframe that we re living and leading through. We expect these advances in efficiency to result in $2 to $3 billion in savings in the years ahead, providing additional fuel for future growth. But more importantly, they ll make it easier for our team to focus on the fundamentals of delivering a great experience for more guests across more trips as we continue to grow. More of what works Our team moved into this year with a lot of energy, a unified commitment to guests and growth and a companywide focus on retail fundamentals and efficiency. In 2023, we ll continue to: Support our team and lean into our culture, knowing they re at the heart of our overall success. Invest in our store-remodel and expansion plans, in our supply chain and in digital and same-day fulfillment through our stores-as-hubs model. Deliver a steady cadence of newness in owned and national brands across our multi-category assortment. Bring the magic of Tar-zhay to life, day in and day out, while delivering affordable joy for our guests. While the facets of our strategy remain consistent, we re accelerating key growth drivers this year. Shareholders will see particular emphasis on: digital growth, our loyalty ecosystem, our media company Roundel and our enterprise sustainability strategy, Target Forward. We recognize that we re moving through an unpredictable consumer and economic landscape, with plenty of near-term challenges on the horizon. But we re optimistic about what we can deliver as a team. We believe we ll be able to flex up the categories and the value proposition that are most relevant to our guests right now, while inspiring guests with newness and staying focused on gaining share across our portfolio to build on our multiyear growth trajectory. We re also realistic about how 2023 will keep challenging us to be agile, resilient and responsive as we sustain our steady record of taking care of our guests, our team, our communities and our shareholders. I appreciate your continued support and look forward to the value we ll create this year. Brian Cornell, Chair and CEO
 • shareholder letter icon 5/1/2023 Letter Continued (Full PDF)
 • stockholder letter icon 4/29/2024 TGT Stockholder Letter
 • stockholder letter icon 4/28/2025 TGT Stockholder Letter
 • stockholder letter icon 4/27/2026 TGT Stockholder Letter
 • stockholder letter icon More "Department Stores" Category Stockholder Letters
 • Benford's Law Stocks icon TGT Benford's Law Stock Score = 83


TGT 5/1/2023 Shareholder/Stockholder Letter Transcript:


Annual Report
2022


Welcome to our
2022 Annual Report
To explore key stories of the past
year and find out what   s ahead,
visit corporate.target.com. You can
view our Annual Report online at
target.com/annualreport.
Financial Highlights
(Note: Reflects amounts attributable to continuing operations. 2017 was a 53-week year.)
$106,005
$109,120
$4,224
$4,110
$4,658
$6,539
$8,946
$3,848
$2,908
$2,930
$3,269
$4,368
$6,946
$2,780
$5.29
$5.50
$6.34
$8.64
$14.10
$5.98
Diluted EPS
$93,561
In Millions
$78,112
Net Earnings
In Millions
$75,356
Operating Income
In Millions
$72,714
Total Revenue
   17
   18
   19
   20
   21
   22
   17
   18
   19
   20
   21
   22
   17
   18
   19
   20
   21
   22
   17
   18
   19
   20
   21
   22
2022 Growth: 2.9%
Five-year CAGR: 8.5%
2022 Growth:    57.0%
Five-year CAGR:    1.8%
2022 Growth:    60.0%
Five-year CAGR:    0.9%
2022 Growth:    57.6%
Five-year CAGR: 2.5%
Total 2022 Sales: $107,588 Million
28%
21%
18%
17%
16%
Beauty & Household
Essentials
Food & Beverage
Home Furnishings
& D  cor
Hardlines
Apparel &
Accessories


Letter to Shareholders
Anchoring to new excellence
The model we laid out in 2019, before the pandemic, was to grow
total revenue steadily in the mid-single digits, and to translate that into
accelerated growth in operating income and earnings per share.
In broad strokes, after we recover from the unique and significant profit
headwinds we faced in 2022, we believe that this remains the right
trajectory for Target in the long term.
However, a couple of variables in the model have changed significantly
for the better.
First, the revenue gains we anticipate in the years ahead will be built
on a base of nearly $110 billion, not the $78 billion that served as our
starting mark in 2019.
Second, with the new scale of our business and the continuing
maturation of capabilities that barely existed three years ago, we see
tremendous opportunities to streamline and simplify how we run Target.
Dear shareholders,
Steady stewardship has always been a hallmark of our growth
philosophy. Deliver what guests want and need today while anticipating
where they   re headed tomorrow. Invest vigorously in the team, strategy
and capabilities to stay in step with guests. Grow steadily. Grow
profitably. And harvest the benefits of increasing scale to build on
these efforts perpetually.
This discipline and alignment have produced continuous growth
through a wide range of business environments, with ample
opportunity still ahead of us.
But not all of our recent growth has been steady. In the core pandemic
years of 2020 and 2021, we spiked to never-before-seen growth rates
that stretched our model to new limits. Our team was able to support
that unexpected growth because the fundamentals were in place,
and we carefully stewarded capital, capabilities and above all our
connection to guests in an extraordinary moment for our company.
Even in 2022, with constrained consumer demand and massive shifts
in buying behaviors, we grew by more than $3 billion. Today, Target is
more than $30 billion bigger than it was in 2019.
Consistently trusted
A significant part of this growth has been driven by traffic. Last year   s
traffic gain of 2.1% marked the sixth straight year of growth in this
key metric. It demonstrates that even as guests    day-to-day needs
fluctuate   often rapidly and dramatically   they   re turning to Target
more and more for everything they want and need.
That speaks to the trust and loyalty we   re continuously building with
our guests. Regardless of era or environment, our team takes a lot
of pride in being able to flex into the merchandise categories and
channels that are most relevant to guests   and then being able to
flex again when things change.
For instance, last year, comp sales in frequency categories like
food & beverage, essentials and beauty grew quickly as guests on
tighter budgets prioritized basics. But while navigating high inflation
and rapidly rising interest rates, guests still looked to us for their
discretionary choices, purchasing nearly $55 billion in apparel,
home and hardlines in 2022.
This flexibility and focus on guests consistently delivers growth   
whether in the pre-pandemic years of 2017   2019, or in the peak
of the pandemic, or in this still-unfolding transitional timeframe that
we   re living and leading through.
We expect these advances in efficiency to result in $2 to $3 billion in
savings in the years ahead, providing additional fuel for future growth.
But more importantly, they   ll make it easier for our team to focus on the
fundamentals of delivering a great experience for more guests across
more trips as we continue to grow.
More of what works
Our team moved into this year with a lot of energy, a unified
commitment to guests and growth and a companywide focus on
retail fundamentals and efficiency. In 2023, we   ll continue to:
    Support our team and lean into our culture, knowing they   re at the
heart of our overall success.
    Invest in our store-remodel and expansion plans, in our supply
chain and in digital and same-day fulfillment through our
stores-as-hubs model.
    Deliver a steady cadence of newness in owned and national brands
across our multi-category assortment.
    Bring the magic of Tar-zhay to life, day in and day out, while delivering
affordable joy for our guests.
While the facets of our strategy remain consistent, we   re accelerating
key growth drivers this year. Shareholders will see particular emphasis
on: digital growth, our loyalty ecosystem, our media company Roundel
and our enterprise sustainability strategy, Target Forward.
We recognize that we   re moving through an unpredictable consumer
and economic landscape, with plenty of near-term challenges on the
horizon. But we   re optimistic about what we can deliver as a team.
We believe we   ll be able to flex up the categories and the value
proposition that are most relevant to our guests right now, while
inspiring guests with newness and staying focused on gaining share
across our portfolio to build on our multiyear growth trajectory.
We   re also realistic about how 2023 will keep challenging us to be agile,
resilient and responsive as we sustain our steady record of taking care
of our guests, our team, our communities and our shareholders.
I appreciate your continued support and look forward to the value we   ll
create this year.
Brian Cornell, Chair and CEO


shareholder letter icon 5/1/2023 Letter Continued (Full PDF)
 

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