Target Corp

Business Overview

Target Corporation offers fashionable, differentiated merchandise and everyday essentials to its customers, referred to as "guests." The company operates through a single segment, enabling guests to purchase products in stores or via digital channels. The majority of its net sales are generated from the sale of merchandise, with some revenue also coming from advertising and credit card profit-sharing income. Many of its stores offer a wide assortment of general merchandise and a full line of groceries.

General Target Corporation was incorporated in Minnesota in 1902. Our corporate purpose is to help all families discover the joy of everyday life. We offer our customers, referred to as "guests," fashionable, differentiated merchandise and everyday essentials at discounted prices. We operate as a single segment designed to enable guests to purchase products seamlessly in stores or through our digital channels. Since 1946, we have given 5 percent of our profit to communities. When used in this report, the terms "we," "our," "us," "Target," and the "Corporation" mean Target Corporation and its subsidiaries, collectively, unless the context otherwise requires or indicates. Strategy Target’s strategy is grounded in our purpose to help all families discover the joy of everyday life and our ambition to be the most delightful experience in retail. We differentiate through design, style, and value, and a curated multi-category assortment delivered across stores and digital channels. Our strategy is centered on four priorities. Lead with Merchandising Authority. Curating design-led, trend-right assortments that combine quality, newness, and value. We focus on categories and brands where we can offer a distinctive and relevant experience for our guests. Elevate the Guest Experience. Elevating the guest experience by making shopping easy, inspiring, and friendly. Our stores remain central to this strategy as destination-worthy environments and fulfillment hubs, complemented by digital channels that support discovery, inspiration, and flexibility. Accelerate Technology to Enable Our Team and Delight Our Guests. Advancing technology, data and operational capabilities that enable personalization, improve execution, and support scalable growth. Strengthen Our Team and Communities. Developing a future-ready workforce through skills, leadership, and tools that amplify human performance. We are also dedicated to working with communities and partners to make life better everywhere we do business, including continuation of our long history of financial giving and volunteering. Through this strategy, we seek to strengthen relevance, deepen engagement, and deliver strong long-term financial performance. TARGET CORPORATION 2025 Form 10-K 2 BUSINESS Table of Contents Index to Financial Statements The vast majority of our Net Sales are generated by the sale of merchandise to customers. Our strategy continues to leverage stores as fulfillment hubs, with stores fulfilling more than 97 percent of total Merchandise Sales in each of the last three years, which provides convenience for our guests at a reduced fulfillment cost. In addition to Merchandise Sales, we generate revenue from other sources, most notably advertising revenue and credit card profit-sharing income. Note 2 to the Financial Statements provides more information. Net Sales (in billions) 2023 (53 weeks) 2024 (52 weeks) 2025 (52 weeks) $107.4 $106.6 $104.8 (a) 2023 consisted of 53 weeks. The extra week in 2023 contributed $1.7 billion of Net Sales. TARGET CORPORATION 2025 Form 10-K 3 BUSINESS Table of Contents Index to Financial Statements Merchandise Sales by Fulfillment Channel Financial Highlights For information on key financial highlights, see Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A).

Company Facts

Risk Flags

• Current ratio below 1: 0.94

Key Questions