Target isn't growing much, but it's still a profitable business for long-term investors.Target (TGT -0.49%) reported earnings this week, and the company's growth was once again low single digits. But this is now a profitable company trading at a great value, so is the stock a buy now? Travis Hoium goes through the trends in this video.*Stock prices used were end-of-day prices of March 4, 2025. The video was published on March 5, 2025. ...

Target (TGT)  reported favorable Q4 results yesterday but has seen its stock dip 3% after the omnichannel retail giant issued cautious guidance.However, Target shares continue to trade at a significant discount to competitors such as Walmart (WMT)  in terms of P/E valuation and investors may be wondering if now is a good time to buy TGT.Image Source: Zacks Investment Research Target’s Q4 Results Target’s Q4 sales of $30.91 billion edged estimates of $30.76 billion despite declining from $31.91 billion in th ...

Financial Data and Key Metrics Changes - The company reported nearly $30 billion in revenue growth over the past five years, with expectations to drive more than $15 billion in revenue growth over the next five years [7][11]. - The sales decline in February was attributed to various factors, including cautious consumer spending in discretionary categories despite record-high sales around Valentine's Day [13][14]. - Q4 ending inventory at cost was up over 7% compared to last year due to several factors, including the introduction of new products and the addition of new food distribution centers [62]. Business Line Data and Key Metrics Changes - The Beauty segment saw nearly 7% sales growth and share gains, while Apparel also grew share over the last three quarters [11]. - The Food & Beverage category has grown by almost $9 billion over the last five years, making Target the fifth largest digital grocer in America [89]. - The All in Motion activewear line became a $1 billion brand, growing over 10% in 2024 [46][119]. Market Data and Key Metrics Changes - Target's digital business reached $20 billion with nearly 9% growth in Q4 [41]. - The company gained 350 million more guest trips in 2024 compared to 2019, translating to a 20% uptick in traffic [52]. - The company operates in a $4.2 trillion market, with less than 3% market share, indicating significant growth potential [43]. Company Strategy and Development Direction - The company plans to invest $4 billion to $5 billion in stores, supply chain, and technology this year to enhance customer experience [8]. - Target aims to leverage its unique position in retail by focusing on product discovery and creating an inviting shopping experience [6][10]. - The strategy includes expanding the Target Plus marketplace, which has grown to a $1 billion business, and enhancing the in-store and digital shopping experience [22][24]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent economic uncertainty affecting consumer spending, particularly in discretionary categories, but remains optimistic about long-term growth [14]. - The company is focused on improving inventory reliability and enhancing the overall guest experience to meet rising consumer expectations [56][80]. - Management expressed confidence in the ability to deliver on growth expectations through strategic investments and operational improvements [35][80]. Other Important Information - The company has opened 23 new stores in 2024 and plans to open another 20, focusing on full-size Targets to enhance the shopping experience [51]. - The reimagined loyalty program, Target Circle, added 13 million members in 2024, contributing to deeper customer engagement [30]. - The company is modernizing its inventory management systems with AI tools to improve forecasting and reduce costs [64]. Q&A Session Summary Question: What is Target's strategy for growth in the coming years? - Target aims to drive more than $15 billion in revenue growth over the next five years by enhancing product offerings and improving customer engagement [11][78]. Question: How is Target addressing inventory challenges? - The company is focused on improving inventory reliability and has implemented new metrics to better assess in-stock performance [60][62]. Question: What are the expectations for the digital business? - Target's digital business is expected to continue growing, with significant investments in enhancing the digital shopping experience [41][80].

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In Target To Contact Him Directly To Discuss Their OptionsIf you purchased securities in Target between August 26, 2022 and November 19, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).[You may also click here for additional information]NEW YORK, March 5, 2025 /PRNewswire/ -- Faruqi & Faruqi, LLP, a lea ...

Shoppers are gearing up to slap Target with a 40-day boycott over its DEI policy reversal on Wednesday — even as black business owners have warned a boycott could hurt their own brands.It’s a triple whammy for the retailer as it emerges from a brutal year plagued by low spending and prepares for possible cost increases under President Trump’s tariffs.“We’re asking people to divest from Target because they have turned their back on our community,” Rev. Jamal Bryant, an Atlanta-area megachurch pastor who star ...

Just as Best Buy Co Inc BBY and Target Corp TGT gear up for a turnaround, tariffs are threatening to spoil the party. Both retailers are navigating a shifting consumer landscape, but with significant sourcing exposure to China and Mexico, new trade barriers could weigh on margins.Tariffs Eclipse Best Buy's ComebackJPMorgan analyst Christopher Horvers sees Best Buy as a clear victim of tariff uncertainty. Despite posting its first positive comp since third quarter of 2021 and showing strong margin upside, th ...

Core Strategy - Target Corporation aims to generate over $15 billion in revenue growth by fiscal 2030 through investments in product selection, shopping experiences, supply-chain efficiency, and customer rewards programs [1] Product Expansion - Starting in fiscal 2025, Target will refresh key categories such as gaming, sports, and toys, enhancing product selections and in-store experiences [2] - The company plans to launch a new series of Good & Gather Collabs with renowned chefs and introduce over 600 new food and beverage products [3] - Target will expand its beauty category with more than 45 new brands and 2,000 new items, with 90% priced under $20 [4] Omnichannel Shopping Experience - Target is investing in digital and in-store experiences to enhance omnichannel shopping, aiming to increase third-party marketplace sales from $1 billion in fiscal 2024 to over $5 billion by fiscal 2030 [6] - The in-house media division, Roundel, generated over $2 billion in value last year and is set to double in size by fiscal 2030 [7] Store Growth and Supply Chain - Over the next 10 years, Target plans to open more than 300 new locations, focusing on large-format stores and renovating existing locations [8] - The company is modernizing inventory management with AI-driven solutions to optimize stock availability and delivery speed [9] Loyalty Programs and Delivery Services - Target plans to triple its Target Circle 360 membership over the next three years, introducing new benefits including travel-related perks [10] - Same-day delivery through Target Circle 360 is the fastest-growing shopping method, with plans to enhance awareness and accessibility of this service [11] Long-Term Commitment - Target is committed to innovation and customer satisfaction, investing in initiatives that strengthen its competitive edge and drive business growth [12]

Financial Data and Key Metrics Changes - Target reported nearly $30 billion in revenue growth over the past five years, with expectations to drive more than $15 billion in revenue growth over the next five years [3][5] - The digital business reached $20 billion with nearly 9% growth in Q4 [26] - Inventory cost at the end of Q4 was up a little over 7% compared to last year due to various factors including new distribution centers and timing volatility [40][41] Business Line Data and Key Metrics Changes - Beauty saw nearly 7% sales growth and share gains, while apparel also grew share over the last three quarters [6] - The food and beverage category has grown by almost $9 billion over the last five years, making Target the fifth largest digital grocer in the U.S. [61] - The All In Motion activewear line grew over 10% in 2024, becoming a $1 billion brand [30][82] Market Data and Key Metrics Changes - Target makes up less than 3% of a $4.2 trillion market, indicating significant market share opportunities [27] - Traffic growth was reported at over 20% since 2019, translating to 350 million more guest trips in 2024 compared to 2019 [33][53] Company Strategy and Development Direction - Target plans to invest $4 billion to $5 billion in stores, supply chain, and technology this year [3] - The company aims to enhance its digital experience while maintaining a strong brick-and-mortar presence, emphasizing the interplay between stores and digital [34][26] - Target is focused on delivering an elevated shopping experience that combines affordability, quality, and reliability [91] Management's Comments on Operating Environment and Future Outlook - Management acknowledged persistent economic uncertainty affecting consumer spending, particularly in discretionary categories [9] - Despite near-term challenges, management remains confident in the long-term trajectory of the business and the investments being made [7][9] - The company is committed to improving inventory reliability and enhancing the overall guest experience [37][54] Other Important Information - Target Circle loyalty program added 13 million members in 2024, enhancing customer engagement [17][48] - The company is modernizing its supply chain with AI tools to improve inventory management and forecasting [42] - Target is expanding its third-party marketplace, Target Plus, to enhance product offerings [78] Q&A Session Questions and Answers Question: What is Target's unique place in retail? - Target differentiates itself by being a destination for on-trend, affordable products that consumers cannot find elsewhere, leading to increased guest trips and revenue growth [2][3] Question: How is Target addressing consumer spending trends? - Management noted that while consumers are cautious in discretionary spending, they are willing to splurge on newness, as evidenced by record sales around events like Valentine's Day [8][9] Question: What are the key areas of focus for growth? - Target is focused on delighting consumers with on-trend assortments, enhancing the shopping experience, and improving inventory reliability to drive growth [28][36]

ToplineTarget just reported fourth quarter net sales declined 3% and warned that February topline performance was “soft,” after civil rights leaders called for a Target boycott in Black History Month for changing its position on DEI, followed by a sharp drop in traffic to Target stores and website during the Feb. 28 Economic Blackout.FILE - A community member holds a sign calling for a national boycott of Target stores during a news ... [+] conference outside Target Corporation's headquarters in Minneapolis ...

With cautious consumers making forecasting more difficult, Target on Tuesday (March 4) announced a plan to increase revenue by $15 billion over the next five years, a goal that underscores the company’s strategic push to deepen customer engagement through its physical stores and digital platforms.Referencing a “soft topline performance” in February, Chief Financial Officer Jim Lee pointed to a “declining consumer confidence impacted our discretionary assortment overall” during the company’s Q4 and full year ...