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Net Sales
 9 Months Ended
Nov. 01, 2025
Revenue from Contract with Customer [Abstract]  
Net Sales Net Sales
Merchandise sales represent the vast majority of our revenues. We also earn revenues from a variety of other sources, most notably advertising revenue and credit card profit-sharing income.

Net SalesThree Months EndedNine Months Ended
(millions)November 1, 2025November 2, 2024November 1, 2025November 2, 2024
Apparel & accessories (a)
$3,838 $4,003 $11,635 $12,161 
Beauty (b)
3,232 3,226 9,729 9,729 
Food & beverage (c)
6,008 5,917 17,499 17,308 
Hardlines (d)
3,190 3,152 9,786 9,634 
Home furnishings & décor (e)
3,908 4,185 10,789 11,612 
Household essentials (f)
4,542 4,715 13,321 13,828 
Other merchandise sales34 30 117 120 
Merchandise sales24,752 25,228 72,876 74,392 
Advertising revenue241 167 621 459 
Credit card profit sharing119 148 395 433 
Other158 125 435 367 
Net sales$25,270 $25,668 $74,327 $75,651 
(a)Includes apparel for women, men, young adults, kids, toddlers, and babies, as well as jewelry, accessories, and shoes.
(b)Includes skin and bath care, cosmetics, hair care, oral care, deodorant, and shaving products.
(c)Includes dry and perishable grocery, including snacks, candy, beverages, deli, bakery, meat, produce, and food service (primarily Starbucks) in our stores.
(d)Includes electronics, including video games and consoles, toys, sporting goods, entertainment, and luggage.
(e)Includes bed and bath, home décor, school/office supplies, storage, small appliances, kitchenware, greeting cards, party supplies, furniture, lighting, home improvement, and seasonal merchandise.
(f)Includes household cleaning, paper products, over-the-counter healthcare, vitamins and supplements, baby gear, and pet supplies.

Merchandise sales — We record almost all retail store revenues at the point of sale. Digitally originated sales may include shipping revenue and are recorded upon delivery to the guest or upon guest pickup at the store. Sales are recognized net of expected returns, which we estimate using historical return patterns and our expectation of future returns. As of November 1, 2025, February 1, 2025, and November 2, 2024, the accrual for estimated returns was $187 million, $172 million, and $204 million, respectively.

Revenue from Target gift card sales is recognized upon gift card redemption, which is typically within one year of issuance.

Gift Card Liability ActivityFebruary 1,
2025
Gift Cards Issued During Current Period But Not Redeemed (b)
Revenue Recognized From Beginning LiabilityNovember 1,
2025
(millions)
Gift card liability (a)
$1,209 $461 $(746)$924 
(a)Included in Accrued and Other Current Liabilities.
(b)Net of estimated breakage.

Advertising revenue — Primarily represents revenue related to certain advertising services provided via our Roundel digital advertising business offering. Roundel services are classified as either Net Sales or as a reduction of Cost of Sales or Selling, General, and Administrative (SG&A) Expenses, depending on the nature of the advertising arrangement.
Credit card profit sharing — We receive payments under a credit card program agreement with TD Bank Group (TD). Under the agreement, we receive a percentage of the profits generated by the Target Circle credit card receivables in exchange for performing account servicing and primary marketing functions. TD underwrites, funds, and owns Target Circle credit card receivables, controls risk management policies, and oversees regulatory compliance.

Other — Includes commissions earned on third-party sales through our Target Plus third-party digital marketplace, Target Circle 360 membership revenue, Shipt membership and service revenues, rental income, and other miscellaneous revenues.