Operating Profit Margin
since 2005
Calculation
Target Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Jan 31, 2026 | 4.88% | = | 100 | × | 5,117) | ÷ | 104,780) |
| Feb 1, 2025 | 5.22% | = | 100 | × | 5,566) | ÷ | 106,566) |
| Feb 3, 2024 | 5.31% | = | 100 | × | 5,707) | ÷ | 107,412) |
| Jan 28, 2023 | 3.53% | = | 100 | × | 3,848) | ÷ | 109,120) |
| Jan 29, 2022 | 8.44% | = | 100 | × | 8,946) | ÷ | 106,005) |
| Jan 30, 2021 | 6.99% | = | 100 | × | 6,539) | ÷ | 93,561) |
| Feb 1, 2020 | 5.96% | = | 100 | × | 4,658) | ÷ | 78,112) |
| Feb 2, 2019 | 5.45% | = | 100 | × | 4,110) | ÷ | 75,356) |
| Feb 3, 2018 | 6.00% | = | 100 | × | 4,312) | ÷ | 71,879) |
| Jan 28, 2017 | 7.15% | = | 100 | × | 4,969) | ÷ | 69,495) |
| Jan 30, 2016 | 7.49% | = | 100 | × | 5,530) | ÷ | 73,785) |
| Jan 31, 2015 | 6.25% | = | 100 | × | 4,535) | ÷ | 72,618) |
| Feb 1, 2014 | 5.83% | = | 100 | × | 4,229) | ÷ | 72,596) |
| Feb 2, 2013 | 7.33% | = | 100 | × | 5,371) | ÷ | 73,301) |
| Jan 28, 2012 | 7.62% | = | 100 | × | 5,322) | ÷ | 69,865) |
| Jan 29, 2011 | 7.79% | = | 100 | × | 5,252) | ÷ | 67,390) |
| Jan 30, 2010 | 7.15% | = | 100 | × | 4,673) | ÷ | 65,357) |
| Jan 31, 2009 | 6.78% | = | 100 | × | 4,402) | ÷ | 64,948) |
| Feb 2, 2008 | 8.32% | = | 100 | × | 5,272) | ÷ | 63,367) |
| Feb 3, 2007 | 8.52% | = | 100 | × | 5,069) | ÷ | 59,490) |
| Jan 28, 2006 | 8.22% | = | 100 | × | 4,323) | ÷ | 52,620) |
| Jan 29, 2005 | 7.69% | = | 100 | × | 3,601) | ÷ | 46,839) |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).
1 US$ in millions
The operating profit margin exhibited a generally increasing trend from 2005 through 2008, followed by a period of volatility and then a resurgence before declining sharply in 2022. A subsequent partial recovery is observed in the following years.
- Initial Growth (2005-2008)
- From 2005 to 2008, the operating profit margin increased from 7.69% to 8.32%. This indicates improving operational efficiency or pricing power during this period. The increase, while positive, was not substantial, suggesting a steady rather than dramatic improvement.
- Volatility and Recovery (2009-2017)
- The operating profit margin experienced a significant decrease in 2009, falling to 6.78%, likely influenced by broader economic conditions. It then recovered, peaking at 7.79% in 2011, before fluctuating between approximately 6.00% and 7.49% for the subsequent years. This period suggests a sensitivity to external factors, but also an ability to regain profitability.
- Recent Decline and Partial Recovery (2018-2024)
- A clear downward trend is evident from 2018, with the operating profit margin decreasing from 6.00% to a low of 3.53% in 2022. This substantial decline warrants further investigation, potentially related to increased costs, competitive pressures, or shifts in sales mix. A partial recovery is then observed in 2023 and 2024, with the margin increasing to 5.31% and 5.22% respectively, though remaining below levels seen prior to 2018. A further slight decrease to 4.88% is observed in 2025.
- Relationship to Sales
- While operating income generally increased alongside net sales from 2005 to 2021, the significant drop in operating profit margin in 2022 occurred despite a relatively stable net sales figure. This suggests that the decline in profitability was not primarily driven by a decrease in revenue, but rather by factors impacting cost of goods sold or operating expenses. The increase in net sales in 2021 was accompanied by a significant increase in operating income, resulting in a high operating profit margin of 8.44%.
Overall, the operating profit margin demonstrates a cyclical pattern with periods of growth, volatility, and recent decline. The sharp decrease in 2022, followed by a modest recovery, requires close monitoring to determine the sustainability of future profitability.
AI Ask an analyst for more
Comparison to Competitors
Target Corp., operating profit margin, long-term trends, comparison to competitors
| Target Corp. | Costco Wholesale Corp. | Walmart Inc. | |
|---|---|---|---|
| Jan 31, 2026 | 4.88% | — | 4.22% |
| Feb 1, 2025 | 5.22% | 3.85% | 4.35% |
| Feb 3, 2024 | 5.31% | 3.72% | 4.20% |
| Jan 28, 2023 | 3.53% | 3.41% | 3.37% |
| Jan 29, 2022 | 8.44% | 3.50% | 4.57% |
| Jan 30, 2021 | 6.99% | 3.49% | 4.06% |
| Feb 1, 2020 | 5.96% | 3.33% | 3.96% |
| Feb 2, 2019 | 5.45% | 3.17% | 4.30% |
| Feb 3, 2018 | 6.00% | 3.24% | 4.12% |
| Jan 28, 2017 | 7.15% | 3.26% | 4.73% |
| Jan 30, 2016 | 7.49% | 3.16% | 5.04% |
| Jan 31, 2015 | 6.25% | 3.19% | 5.63% |
| Feb 1, 2014 | 5.83% | 2.92% | 5.68% |
| Feb 2, 2013 | 7.33% | 2.97% | 5.96% |
| Jan 28, 2012 | 7.62% | 2.84% | 5.98% |
| Jan 29, 2011 | 7.79% | 2.80% | 6.10% |
| Jan 30, 2010 | 7.15% | 2.72% | 5.91% |
| Jan 31, 2009 | 6.78% | 2.54% | 5.68% |
| Feb 2, 2008 | 8.32% | 2.77% | 5.87% |
| Feb 3, 2007 | 8.52% | 2.55% | 5.94% |
| Jan 28, 2006 | 8.22% | 2.76% | 5.93% |
| Jan 29, 2005 | 7.69% | 2.84% | 5.99% |
Based on: 10-K (reporting date: 2026-01-31), 10-K (reporting date: 2025-02-01), 10-K (reporting date: 2024-02-03), 10-K (reporting date: 2023-01-28), 10-K (reporting date: 2022-01-29), 10-K (reporting date: 2021-01-30), 10-K (reporting date: 2020-02-01), 10-K (reporting date: 2019-02-02), 10-K (reporting date: 2018-02-03), 10-K (reporting date: 2017-01-28), 10-K (reporting date: 2016-01-30), 10-K (reporting date: 2015-01-31), 10-K (reporting date: 2014-02-01), 10-K (reporting date: 2013-02-02), 10-K (reporting date: 2012-01-28), 10-K (reporting date: 2011-01-29), 10-K (reporting date: 2010-01-30), 10-K (reporting date: 2009-01-31), 10-K (reporting date: 2008-02-02), 10-K (reporting date: 2007-02-03), 10-K (reporting date: 2006-01-28), 10-K (reporting date: 2005-01-29).