TGTNEUTRAL

Gross Margin

29.0%

Updated 320h ago

Sector Performance

23th percentile

TGT

29.0%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after paying the direct costs of producing its goods, so a 29.0% margin means Target retains $0.29 for every dollar of sales before other expenses.

This figure is well below the sector median of 43.9%, placing Target in the 24th percentile among its industry peers — meaning three-quarters of competitors have higher gross margins. While the year-over-year change is not available, the quarter-over-quarter change shows an improvement of +9.8%, and the most recent two quarters (29.0% versus 26.4%) confirm a sequential increase. The combination of a low absolute margin with a rising trend suggests that Target is improving its cost control or pricing power, yet the level still trails most peers, creating a mixed risk profile. This metric partially supports the overall NEUTRAL verdict — the upward trend reduces some downside concern, but the persistent low level relative to peers prevents a bullish case.

Frequently Asked Questions

What does the Gross Margin tell investors about TGT?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are TGT's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.