This morning, though, we get results from Target. Target and target narratives, profit forecasts, as we were talking about discounts and slowing demand weighing on earnings. Bloomberg retail reporter Emily Cohen joins us now.So what are we learning about the consumer that we're already a little bit worried about, Emily. Yeah, I mean, Target is seeing a consumer that is shopping. It's spending, not leaning into the the discretionary things that target is known for.The the retailer trimmed its forecast again ...

分组1 - Target is experiencing a shift in consumer behavior, with shoppers spending less on discretionary items, which are typically Target's strengths [1][4] - The retailer has lowered its profit forecast again, indicating that recovery will take longer than expected [2] - In contrast, Walmart is benefiting from its value-oriented strategy, attracting higher-income shoppers looking for deals [2][3] 分组2 - Walmart's grocery offerings are drawing customers who might have otherwise chosen more expensive grocery options during economic uncertainty [3] - TJ Maxx is successfully attracting discretionary shoppers seeking value and a fun shopping experience, which contrasts with Target's current challenges [3][4] - Target's previous appeal of "bargain hunting" has diminished, and the company is attempting to revive this aspect to attract customers again [6]

Market Overview - The U.S. stock market showed mixed results with the Nasdaq up by 0.12%, the S&P 500 up by 0.03%, and the Dow Jones down by 0.05% [1] Company Highlights - Nvidia's stock rose over 1.5% ahead of its Q3 earnings report for fiscal year 2026, with reports indicating that Saudi Arabia has been approved to purchase a significant amount of U.S. AI chips [1] - Tesla's shares increased by over 1% after receiving approval to begin offering autonomous ride-hailing services in Arizona [1] - Nokia's stock fell by 7.6% following the announcement of a strategic restructuring plan, which will divide the company into two departments: network infrastructure and mobile networks [1] - Target's shares dropped by 2.5% as its Q3 same-store sales growth fell short of expectations, leading the company to lower its full-year profit guidance [1]

Core Insights - PepsiCo has made significant acquisitions, including full ownership of Sabra, Obela, Siete Foods, and Poppi, marking a major diversification effort in its portfolio [1] - The company is undergoing a portfolio transformation and cost reduction strategy to enhance operations and respond to the growing demand for wellness and healthy snacks [2] - The consumer staples sector, including PepsiCo, has faced challenges due to rising living costs, inflation, and a weakening job market, leading to decreased foot traffic and demand for snacks and beverages [3][4] Company-Specific Summaries - **PepsiCo**: The company is focusing on diversifying its product offerings through acquisitions that do not overlap with its existing brands, aiming to adapt to changing consumer preferences [2][7] - **Procter & Gamble (P&G)**: P&G is demonstrating strong pricing power and modest earnings growth, with international markets helping to offset weaknesses in North America [8] - **Colgate-Palmolive**: Colgate is primarily focused on oral and home care products, maintaining a strong position in the toothpaste market, and has a high-margin pet nutrition segment [9][10][11] - **Kimberly-Clark**: The company is facing challenges following its acquisition of Kenvue, but it maintains strong brands in the diaper and tissue markets, which are resilient during economic downturns [12][14][15] - **Target**: Target is struggling to compete on price but is improving its in-store experience and e-commerce capabilities, still generating sufficient cash flow to support its dividend [16] Market Performance and Valuation - The consumer staples sector, including Dividend Kings like PepsiCo, P&G, and Colgate, has seen a decline in stock performance, with many companies trading at attractive valuations based on forward earnings projections [17][18] - Kimberly-Clark is noted for trading at a significant discount to its historical average, although this may change post-acquisition of Kenvue [18] - The current market conditions present a compelling opportunity for long-term investors to consider these Dividend Kings, particularly those with strong cash flow and dividend reliability [19]

Market Overview - Wall Street has experienced volatility recently, with stocks attempting to stabilize. Gold and silver prices are rising, while crude oil is declining. Treasuries and the dollar remain mostly flat [1]. Nvidia Corp. (NVDA) - Nvidia is set to report its quarterly results, with analysts expecting earnings per share of $1.25 and revenue of approximately $55 billion for Q3. The performance of Nvidia is critical as it may influence the broader AI stock market, which has faced significant declines recently [2]. Employment Data - The September jobs report is scheduled for release, with expectations of a job gain of about 50,000. This report was delayed due to the government shutdown, leaving investors and policymakers with limited information [3]. Lowe's Cos. (LOW) - Lowe's reported better-than-expected earnings per share, exceeding estimates by six cents. The company highlighted strong digital and contractor sales. Recently, Lowe's acquired Foundation Building Materials for $8.8 billion to enhance sales to contractors [5]. Target Corp. (TGT) - Target reported disappointing results, with same-store sales declining more than anticipated. The company has reduced its full-year earnings per share forecast and plans to invest $5 billion in store remodels and increasing shelf space for lower-priced seasonal items to regain momentum [6]. Adobe Inc. (ADBE) - Adobe is reportedly acquiring Semrush Holdings for $1.9 billion, translating to $12 per share, which is a significant premium over Semrush's previous closing price of $6.76. This acquisition aims to enhance Adobe's product offerings in online advertising and social media research [6].

Financial Data and Key Metrics Changes - In Q3, net sales were down 1.5% year-over-year, slightly better than year-to-date performance but about 60 basis points softer than Q2 [38] - Q3 GAAP EPS was $1.51 compared to $1.85 a year ago, while adjusted EPS was $1.78, about 4% lower than the previous year [42] - Gross margin rate for Q3 was 28.2%, about 10 basis points lower than last year, with pressures from higher markdowns offset by lower inventory shrink [40][41] Business Line Data and Key Metrics Changes - Comp sales in Q3 were down 2.7%, reflecting softness in discretionary categories like home and apparel, partially offset by growth in food and beverage and Fun 101 [28] - Digital comparable sales grew 2.4%, driven by over 35% growth in same-day delivery [28] - Fun 101 saw nearly 10% comp growth in toys and double-digit growth in music and video games, indicating positive consumer response to unique assortments [28][30] Market Data and Key Metrics Changes - Consumer sentiment is at a three-year low, with concerns about jobs and affordability impacting spending behavior [31] - Despite cautious consumer sentiment, there is a strong demand for trend-right deals in discretionary categories [31] - The company is experiencing volatility in sales patterns, with net sales close to flat in August and October but down about 4% in September [40] Company Strategy and Development Direction - The company is focused on three priorities: solidifying design-led merchandising authority, enhancing the shopping experience, and leveraging technology for efficiency [9][10] - Plans for next year include increasing capital expenditures to about $5 billion, which is $1 billion more than the current year, to support store experience and remodel programs [24][48] - The company aims to transform its in-store shopping experience and assortment, with plans for more changes than in any year in the past decade [36] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the business has not been performing up to its potential and is focused on supporting the leadership team to enhance merchandising authority and retail experience [7][9] - The company is committed to making the right investments to achieve desired outcomes in merchandising and guest experience [57] - Management expresses confidence in the company's direction and the steps being taken to return to sustainable growth [48][51] Other Important Information - The company has eliminated approximately 1,800 roles at headquarters to enhance agility and decision-making [10] - The company is investing in technology to improve speed and guest experience, including AI-enabled consumer insights and machine learning for inventory management [13][18] Q&A Session Summary Question: Can we rule out a reset of margin during this investment phase? - Management is focused on making the right investments to achieve desired outcomes and is committed to finding efficiencies within the business [56][58] Question: What are the most urgent gaps and capabilities? - Management is excited about the momentum in FUN 101 and the focus on creating a consistently elevated experience, with ongoing improvements in stock availability [61][62] Question: How do you think about the key areas for investment with the $5 billion CapEx? - Investments will focus on stores, remodels, and technology, with a strong new store pipeline and ongoing store refreshes to enhance the guest experience [70][74]

Financial Data and Key Metrics Changes - In Q3, net sales were down 1.5% year-over-year, slightly better than year-to-date performance but about 60 basis points softer than Q2 [38] - Q3 GAAP EPS was $1.51 compared to $1.85 a year ago, while adjusted EPS was $1.78, about 4% lower than the previous year [42] - Gross margin rate for Q3 was 28.2%, about 10 basis points lower than last year, with pressures from higher markdowns offset by lower inventory shrink [40][41] Business Line Data and Key Metrics Changes - Comparable sales in Q3 were down 2.7%, with growth in food and beverage and Fun 101 partially offsetting declines in discretionary categories like home and apparel [28] - Digital comparable sales grew 2.4%, driven by over 35% growth in same-day delivery [28] - Fun 101 saw nearly 10% comp growth in toys and double-digit growth in music and video games, indicating strong performance in categories with unique assortments [28][30] Market Data and Key Metrics Changes - Consumer sentiment is at a three-year low, with concerns about jobs and affordability impacting spending behavior [31] - The company noted that guests are prioritizing value and spending more on essentials while looking for deals in discretionary categories [31] Company Strategy and Development Direction - The company is focused on three priorities: solidifying design-led merchandising authority, enhancing the shopping experience, and leveraging technology for efficiency [9][10] - Plans for next year include increasing capital expenditures to about $5 billion, which is $1 billion more than the current year, to support store experience and remodel programs [24][48] - The company is modernizing its cross-functional teams to improve decision-making and speed in product offerings [64][75] Management's Comments on Operating Environment and Future Outlook - Management expressed that they are not satisfied with current results and are committed to driving change to return to sustainable growth [49][80] - The company is actively addressing challenges in the external environment and is focused on making necessary investments to improve performance [47][48] Other Important Information - The company has eliminated approximately 1,800 roles at headquarters to streamline operations and enhance agility [10] - The upcoming financial community meeting will take place in Minneapolis on March 3rd, providing insights into the company's evolution and strategy [53] Q&A Session Summary Question: Can we rule out a reset of margin during this investment phase? - Management indicated that they are committed to making the right investments to achieve desired outcomes, focusing on efficiency and experience improvements [57][59] Question: What are the most urgent gaps and capabilities? - Management highlighted the importance of merchandising authority and the positive response seen in categories like FUN 101, indicating a focus on elevating the guest experience [61][62] Question: How does the company view the $5 billion CapEx investment? - The company sees this investment as crucial for driving growth, particularly in new stores and remodels, while also emphasizing the importance of technology [70][75]

Accessibility StatementSkip Navigation Target's new app experience in ChatGPT will stand out by offering curated browsing, multi-item purchases in a single transaction, fresh food shopping and multiple fulfillment options MINNEAPOLIS, Nov. 19, 2025 /PRNewswire/ -- Target Corporation (NYSE: TGT) today announced that consumers will be able to discover and shop Target right inside ChatGPT, part of an effort to reimagine AI- powered shopping as a curated, conversational experience — and just in time for holiday ...

Financial Data and Key Metrics Changes - Third-quarter net sales decreased by 1.5% compared to the previous year, slightly better than year-to-date performance but about 60 basis points softer than Q2 [35] - GAAP EPS for Q3 was $1.51, down from $1.85 a year ago, while adjusted EPS was $1.78, approximately 4% lower than the previous year [40] - Gross margin rate for Q3 was 28.2%, about 10 basis points lower than last year, with pressures from higher markdowns offset by lower inventory shrink [38][39] Business Line Data and Key Metrics Changes - Comparable sales in discretionary categories like home and apparel were down 2.7%, while food and beverage saw growth, particularly in beverages, which were up nearly 7% [26][27] - Digital comparable sales grew by 2.4%, driven by over 35% growth in same-day delivery [26] - The FUN 101 category delivered strong performance, with nearly 10% comp growth in toys and double-digit growth in music and video games [26] Market Data and Key Metrics Changes - Consumer sentiment is at a three-year low, with concerns about jobs and affordability impacting spending behavior [28] - The company is experiencing volatility in sales, with net sales close to flat in August and October but down about 4% in September [38] - The company is reaching around 80% of the U.S. population with same-day delivery, with sales growing more than 35% in this segment [21] Company Strategy and Development Direction - The company is focused on three priorities: solidifying design-led merchandising authority, enhancing the shopping experience, and leveraging technology for efficiency [9][10] - Plans for next year include increasing capital expenditures to about $5 billion, which is $1 billion more than the current year, to support store experience and remodel programs [23][45] - The company is committed to making investments that drive growth, particularly in technology and store experience [64] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the business has not been performing up to its potential and is focused on returning to sustainable growth [6][9] - The company is actively making changes to improve merchandising authority and guest experience, with a strong emphasis on technology [10][48] - Management expresses confidence in the company's direction and the steps being taken to navigate the current challenging environment [46][49] Other Important Information - The company has eliminated approximately 1,800 roles at headquarters, about 8% of its footprint, to enhance agility and decision-making [10] - The company is introducing 20,000 new items into its holiday assortment, twice as many as last year, with over half exclusive to Target [33] Q&A Session Summary Question: Can we rule out a reset of margin during this investment phase? - Management is committed to making the right investments to achieve desired outcomes in merchandising authority and guest experience [51] Question: What are the most urgent gaps and capabilities? - Management is excited about the momentum in categories like FUN 101 and the focus on creating a consistently elevated experience [55] Question: How does the company view the $5 billion CapEx investment? - Investments will focus on areas that drive growth, including new stores, remodels, and technology enhancements [60][64] Question: How is the company addressing the need for change? - Management emphasizes the importance of driving change to achieve different outcomes and is focused on clear priorities [66]

Core Insights - Target (TGT) reported quarterly earnings of $1.78 per share, exceeding the Zacks Consensus Estimate of $1.76 per share, but down from $1.85 per share a year ago, indicating an earnings surprise of +1.14% [1] - The company posted revenues of $25.27 billion for the quarter ended October 2025, missing the Zacks Consensus Estimate by 0.36% and down from $25.67 billion year-over-year [2] - Target shares have declined approximately 34.5% year-to-date, contrasting with the S&P 500's gain of 12.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.23 on revenues of $30.61 billion, and for the current fiscal year, it is $7.32 on revenues of $105 billion [7] - The estimate revisions trend for Target was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting performance in line with the market in the near future [6] Industry Context - The Retail - Discount Stores industry, to which Target belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]