What is Target's merchandising cost of sales — cost of sales?

Target (TGT) reported merchandising cost of sales — cost of sales of $17.00B in Q4 2025.

How has Target's merchandising cost of sales — cost of sales changed year-over-year?

Target's merchandising cost of sales — cost of sales decreased by 1.3% year-over-year, from $17.22B to $17.00B.

What is the long-term trend for Target's merchandising cost of sales — cost of sales?

Over 2 years (2023 to 2025), Target's merchandising cost of sales — cost of sales has grown at a -1.9% compound annual growth rate (CAGR), from $70.65B to $67.98B.

What does merchandising cost of sales — cost of sales mean?

The total direct costs incurred to acquire the merchandise sold to customers.

Products & Services · Cost of Sales

Merchandising Cost of Sales — Cost of Sales

Target Merchandising Cost of Sales — Cost of Sales remained flat by 0.0% to $17.00B in Q4 2025 compared to the prior quarter. Year-over-year, this metric declined by 1.3%, from $17.22B to $17.00B. Over 2 years (FY 2023 to FY 2025), Merchandising Cost of Sales — Cost of Sales shows relatively stable performance with a -1.9% CAGR. This is a positive signal — lower values indicate better performance for this metric.

Analysis

StatementSegment

CategoryEfficiency

SignalLower is better

VolatilityStable

First reportedQ2 2023

Last reportedQ1 2026

Rolls up toTotal Cost of Revenue

How to read this metric

A decrease in cost of sales relative to revenue typically indicates improved supply chain efficiency or better vendor pricing, while an increase may signal rising commodity costs or inventory management challenges.

Detailed definition

This metric represents the direct costs attributable to the production and procurement of goods sold within the company'...

Peer comparison

This is a standard Cost of Goods Sold (COGS) metric comparable to other large-scale retailers, though variations exist based on accounting for logistics and distribution center allocations.

Metric ID: tgt_segment_merchandising_cost_of_sales_cost_of_sales

Historical Data

3 years

	FY'23	FY'24	FY'25
Value	$70.65B	$68.88B	$67.98B
YoY Change	—	-2.5%	-1.3%

Range$67.98B – $70.65B

CAGR-1.9%

Avg YoY Growth-1.9%

Median YoY Growth-1.9%

Current Streak2+ years decline

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Frequently Asked Questions

What is Target's merchandising cost of sales — cost of sales?: Target (TGT) reported merchandising cost of sales — cost of sales of $17.00B in Q4 2025.
How has Target's merchandising cost of sales — cost of sales changed year-over-year?: Target's merchandising cost of sales — cost of sales decreased by 1.3% year-over-year, from $17.22B to $17.00B.
What is the long-term trend for Target's merchandising cost of sales — cost of sales?: Over 2 years (2023 to 2025), Target's merchandising cost of sales — cost of sales has grown at a -1.9% compound annual growth rate (CAGR), from $70.65B to $67.98B.
What does merchandising cost of sales — cost of sales mean?: The total direct costs incurred to acquire the merchandise sold to customers.