Core Insights - Target's fiscal first-quarter earnings report showed disappointing results, with the company losing market share to competitors like Walmart, Costco, and Amazon [1] - The decline in same-store sales was partly attributed to customer backlash against the rollback of diversity, equity, and inclusion programs [2] - The company warned of the impact of tariffs and economic uncertainty on consumer spending [3] Financial Performance - Target's revenue decreased nearly 3% year over year to $23.8 billion, with same-store sales falling by 3.8% [5] - In-store comparable-store sales dropped by 5.7%, while e-commerce sales rose by 4.7% year over year [6] - Adjusted earnings per share (EPS) fell 36% to $1.30, reflecting lower sales and reduced operating leverage [6] Category Performance - The only category to see growth was food and beverage, which increased by 0.8%, while beauty remained flat [7] - Target managed to hold or gain market share in 15 of 35 sub-merchandise categories, particularly in women's swimwear and toddler apparel [7] Digital Business - Roundel digital advertising revenue grew by 25% year over year to $163 million, with same-day delivery surging by 36% [8] - Despite growth in digital sales, these segments are still too small to significantly offset the challenges in the core in-store business [8] Margin and Guidance - Gross margin decreased by 60 basis points to 28.2%, attributed to markdowns and higher fulfillment costs [9] - Target revised its full-year earnings guidance down to a range of $7 to $9 per share, from a previous outlook of $8.80 to $9.80 [10] Market Position - Target's stock is down about 30% year to date, contrasting with the performance of Walmart and Costco, which are near all-time highs [11] - The company is more exposed to tariffs and weaker consumer spending due to a higher percentage of discretionary merchandise compared to peers [12] Valuation - Target's stock trades at a significant discount to other leading retailers, with a forward price-to-earnings ratio of less than 12 times this year's analyst estimates [12] - Despite the valuation gap, the company's ongoing underperformance raises concerns about its ability to recover [14]

Group 1 - Target is exploring growth opportunities through Circle 360 loyalty program and Roundel advertising revenue [1] - The company is focusing on store-as-hub logistics to enhance operational efficiency [1] - The outlook suggests that Target stock may outperform the market over the next five years [1]

Core Viewpoint - Target has been one of the most disappointing retail stocks, with a stock price decline of 39% over the last three years compared to a 50% gain in the S&P 500 [1] Financial Performance - Target's recent earnings report showed comparable sales fell by 3.8%, with revenue decreasing by 2.8% to $23.85 billion, missing estimates of $24.35 billion [2] - Gross margin declined from 28.8% to 28.2%, and adjusted earnings per share fell from $2.03 to $1.30, significantly below the consensus estimate of $1.65 [2] Sales and Market Challenges - The decline in sales was widespread across discretionary categories, with home furnishings and decor particularly weak, dropping 8% to $3.2 billion [4] - Target management cited weakening consumer sentiment and the impact of a boycott related to its DEI initiatives as contributing factors to its struggles [5] Future Guidance - The company revised its full-year adjusted EPS guidance down from $8.80 to $9.80 to a new range of $7.00 to $9.00, and also lowered its sales guidance to a low-single-digit decline [6] Strategic Initiatives - Target is establishing an enterprise formation office to develop a turnaround strategy, indicating a lack of clarity on the reasons behind declining sales [9] - The company is also addressing tariff pressures by rearranging its supply chain and leveraging economies of scale [8] Stock Valuation and Dividends - Following the earnings miss and guidance cut, Target's stock fell 5.2%, but it trades at a forward price-to-earnings ratio of less than 12, with a dividend yield of 4.8% [11] - Target is recognized as a Dividend King, having raised its quarterly payout for over 50 years, and expects a slight increase in dividends this year [11] Strengths and Outlook - Despite current challenges, Target retains strengths in omnichannel fulfillment, unique product assortment, and brand recognition [12] - The company is making progress in reducing theft and expanding its digital advertising business, suggesting potential for future growth [12]

Group 1: Market Performance - The S&P 500 index gained 9.8% over the last year through May 21, despite recent volatility due to higher tariffs [1] - Target's share price lost more than 40% during the same period, indicating underperformance compared to the index [1] Group 2: Dividend Commitment - Target has maintained a dividend payout since 1967 and has raised its quarterly payout for 53 consecutive years, qualifying it as a Dividend King [4] - The company has a payout ratio of 50%, which supports its ability to continue paying dividends even with a reduced earnings outlook of $7 to $9 per share for the year [10] Group 3: Sales Performance - Target's fiscal fourth-quarter same-store sales increased by 1.5%, but the first-quarter comps dropped by 3.8%, affected by decreased traffic and spending [6][7] - The company is facing challenges from higher tariffs and boycotts related to management decisions, which have impacted sales and traffic [8][9] Group 4: Valuation Metrics - Target's stock price decline has resulted in a compelling valuation, with a price-to-earnings (P/E) ratio of 11, down from 18 a year ago, compared to the S&P 500's P/E of 28 [11] - The dividend yield for shareholders is 4.8%, significantly higher than the S&P 500's yield of 1.3% [10] Group 5: Future Outlook - Despite current challenges, there is optimism that the economy will stabilize, leading to a return of consumers to Target [8] - The company is expected to see earnings growth and an increase in share price as market conditions improve [12][13]

Ross Stores Inc ROST shares tanked after the company on Thursday reported its first-quarter results.The announcement came amid an exciting earnings season. Here are some key analyst takeaways.JPMorgan On Ross StoresAnalyst Matthew Boss reiterated an Overweight rating, while slashing the price target from $161 to $141.Ross Stores reported its first-quarter earnings at $1.47 per share, beating Street expectations of $1.44 per share, and flat same-store-sales growth, better than estimates of a 0.6% decline, Bo ...

Target (TGT 2.20%) reported quarterly sales declines compared to the previous year and downgraded its outlook for the rest of 2025.*Stock prices used were the afternoon prices of May 20, 2025. The video was published on May 22, 2025. ...

Is it time to buy shares, or could things get worse before they get better?Target (TGT 2.20%) has seen its stock price tumble approximately 30% year to date, underperforming the broader market by a wide margin. Its disappointing financial results this year have raised questions about the retailer's ability to return to steady, meaningful growth. The company's challenges were especially put in the spotlight on Wednesday morning, when Target reported a decline in sales. Adding to the bad news, management said ...

Target Corporation (NYSE: TGT ) just reported its Q1 2025 earnings , and the results were weak to say the least. Most of the important numbers were disappointing. For example, sales of the company declined, comparable store sales fell more thanI’m passionate about finance and investing, focusing on business analysis, fundamental analysis, valuation, and long-term growth, especially in sectors like AI, fintech, finance and tech. I study finance and economy and have hands-on experience in equity research, fin ...

Target Corporation NYSE: TGT is struggling in 2025 and will take time for a sustained turnaround. However, its business remains profitable and a turnaround is likely, making it a deep-value, high-yielding retail stock trading at a generational low. Here’s a look at five reasons why now is a good time to buy it.  Get Target alerts:Target: The Technicals Indicate the Bottom Is In Target TodayTGTTarget$93.01 -5.11 (-5.21%) 52-Week Range$87.35▼$167.40Dividend Yield4.82%P/E Ratio9.86Price Target$127.29Add to Wa ...

Retail Sector Performance - Target has consistently underperformed, failing to meet even lowered estimates, indicating ongoing challenges in the post-COVID environment and losing market share to Walmart and Amazon [3][4] - Walmart continues to thrive, leveraging its digital business to enhance sales of essential goods and expand into high-margin areas such as advertising and third-party marketplaces [4][5] - The disparity in revenue sources is notable, with approximately 60% of Walmart's revenue coming from essentials compared to only 20% for Target, impacting their respective performances [5][6] Earnings Trends - For Q1, total earnings for 469 S&P 500 members increased by 11.5% year-over-year, with revenues up by 4.3%, but the percentage of companies beating EPS and revenue estimates fell below historical averages [8] - In the Retail sector, earnings rose by 11.5% with a 5% increase in revenues, but excluding Amazon, the growth rate drops to a decline of 5.2% [8] Future Expectations - Q2 earnings for the S&P 500 are projected to grow by 5.5% year-over-year, with revenues expected to rise by 3.8%, although estimates have been cut across most sectors [10][11] - The Tech sector is expected to see earnings growth of 12.1% in Q2, but this is a reduction from earlier projections, indicating a stabilization in revisions [14][16]