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TGT Faces Earnings Pressure as Tariffs and Lower Spend Bite Margins
ZACKS· 2025-09-22 13:35
Core Insights - Target Corporation (TGT) reported mixed second-quarter fiscal 2025 results, with adjusted earnings per share falling 20.2% year over year to $2.05 and revenues dipping 0.9% to $25.21 billion, indicating challenges from cautious consumer spending and ongoing tariff-related costs [1] Financial Performance - Comparable sales declined 1.9%, despite improved store traffic and digital demand, reflecting a shrinking average basket size, which signals consumer restraint on discretionary purchases [1] - Gross margin contracted 100 basis points to 29%, primarily due to approximately 210 basis points of pressure from merchandising, including inventory-adjustment costs and tariff-related expenses [2] - Operating margin decreased 120 basis points to 5.2% from 6.4% in the prior-year period, with ongoing tariff-related expenses continuing to impact profitability [3] Future Outlook - Target reaffirmed its full-year fiscal 2025 outlook, predicting a low-single-digit decline in sales and adjusted earnings of $7.00-$9.00 per share, indicating cautious planning amid tariff and consumer uncertainties [4] - The company is investing in operational and merchandising initiatives, including over 10,000 AI licenses to enhance forecasting and inventory accuracy, alongside programs aimed at increasing basket size [5] Market Performance - Target's stock has lost 33.5% year to date, underperforming key peers such as Dollar General Corporation (DG) and Costco Wholesale Corporation (COST), which saw share increases of 37.7% and 5.6%, respectively [6] - Target's forward 12-month price-to-earnings ratio of 11.39 reflects a lower valuation compared to the industry's average of 30.14, indicating a discount relative to peers [7] Earnings Estimates - The Zacks Consensus Estimate for TGT's fiscal 2025 earnings implies a year-over-year decline of 15.5%, while the estimate for fiscal 2026 indicates growth of 8.9%, with recent upward adjustments in earnings estimates for both fiscal years [10]
First Trust Expands Target Outcome® Lineup with Launch of DLAG, a Dual Directional 10% Buffer ETF Based on SPY
Businesswire· 2025-09-22 13:25
WHEATON, Ill.--(BUSINESS WIRE)--First Trust Advisors L.P. ("First Trust†) a leading exchange- traded fund ("ETF†) provider and asset manager, announced today that it has launched the FT Vest U.S. Equity Dual Directional Buffer ETF – August (Cboe: DLAG) (the "fund†). DLAG seeks to provide returns (before fees and expenses) that either match the price return of the SPDR S&P 500 ETF Trust ("SPY†or the "Underlying ETF†) up to a predetermined upside cap or match the absolute value of the negativ. ...
Target Cautions Shareholders Regarding TRC Capital's "Mini-Tender" Offer
Prnewswire· 2025-09-22 12:30
Accessibility StatementSkip Navigation MINNEAPOLIS, Sept. 22, 2025 /PRNewswire/ -- Target Corporation (NYSE: TGT)Â received notice of an unsolicited mini-tender offer by TRC Capital Corporation ("TRC Capital") to purchase up to 1,500,000 shares of Target's common stock at a price of $89.00 per share in cash, without interest. The offer is for approximately 0.33 percent of the outstanding shares of Target's common stock. Target is not affiliated with TRC Capital and does not endorse this unsolicited mini-ten ...
Target Announces Biggest Target Circle Week Yet with Deeper Discounts, Seasonal Styles, Member Perks and Exclusive Product Drops
Prnewswire· 2025-09-22 10:01
Deal of the Day starts at 40% off, featuring top national brands like Apple and GE and fall style must-haves only from Target A Target Circle 360 paid membership brings guests early access to deals along with a new in- store experience and surprise giveaways at all Target stores Seven days of savings help guests prepare for Halloween and early holiday shopping with the latest product trends MINNEAPOLIS , Sept. 22, 2025 /PRNewswire/ --Â Target Corporation's (NYSE: TGT) Target Circle Week is returning Oct. 5- ...
Jim Cramer on Target: “I Am in a Wait-and-See Mode on This”
Yahoo Finance· 2025-09-20 04:45
Group 1 - Target Corporation (NYSE:TGT) is currently experiencing a significant stock decline of 33% amid CEO transition and uncertainty [1] - The company is recognized as a general merchandise retailer offering a wide range of products including apparel, beauty, food, electronics, home goods, and household essentials [2] - There is a notable wealth transfer of $100 trillion from baby boomers to younger generations, which may positively impact stocks like Target [2] Group 2 - The new CEO's strategies and decisions are under scrutiny, and there is a call for a wait-and-see approach before making further investment recommendations [1] - While Target is viewed as a fundamentally strong investment, there are suggestions that certain AI stocks may present greater upside potential with less downside risk [2]
Target Corporation’s (TGT) Dividend History Secures its Spot in Reliable Dividend Stocks to Buy Under $100
Yahoo Finance· 2025-09-20 01:01
Group 1 - Target Corporation (NYSE:TGT) is recognized as one of the 13 best high dividend stocks to buy under $100 [1] - The company offers a unique mix of everyday essentials and exclusive merchandise, making it a popular shopping destination across various categories [2] - Despite a nearly 35% drop in stock price since the beginning of 2025, Target Corporation still possesses significant long-term growth potential through store expansions and online channels [3] Group 2 - Target Corporation has a reliable dividend history, having increased its payouts for 54 consecutive years [4] - The company declared a quarterly dividend of $1.14 per share, maintaining its previous dividend level, with a dividend yield of 5.10% as of September 18 [4]
Where Will Target Stock Be in 5 Years?
The Motley Fool· 2025-09-19 07:45
Core Viewpoint - Target is facing significant challenges that have led to a decline in investor confidence and stock value, but it has potential for a turnaround due to its extensive store network and strong dividend history [1][2][15]. Group 1: Current Challenges - Target's stock has decreased by about two-thirds since its peak in November 2021, while the S&P 500 has more than doubled in total returns over the same period [1]. - The company is grappling with elevated inventories from past supply chain issues and has faced backlash from its diversity, equity, and inclusion policies [4]. - The appointment of COO Michael Fiddelke as CEO has disappointed investors who preferred an outsider, adding to the challenges of regaining investor confidence [5]. - In the first half of fiscal 2025, Target's net sales were $49 billion, a 2% decline from the previous year, while costs of sales and depreciation increased, leading to an 8% decline in earnings [6]. Group 2: Future Outlook - Target forecasts a low single-digit decline in sales for fiscal 2025, but analysts predict a 2% increase in net sales for fiscal 2026 [7]. - Despite concerns, Target's extensive footprint of nearly 2,000 stores and plans to add about 300 stores provide a competitive advantage for omnichannel retailing [9]. - The company offers a dividend of $4.56 per share, yielding 5.1%, significantly higher than the S&P 500 average of 1.2%, and has a history of 54 years of annual dividend increases, indicating strong financial health [10][11]. - Target's dividend cost over the last 12 months was just over $2 billion, while it generated over $2.9 billion in free cash flow, suggesting it can sustain its dividend payments [12]. - The company's P/E ratio of 10 is below the S&P 500 average of 31, indicating that Target's stock may be undervalued compared to its competitors [13]. Group 3: Long-term Potential - Although immediate growth is uncertain, Target's strong market position and planned store expansions could lead to positive growth over the next five years [15][16]. - The combination of a high, sustainable dividend and a low earnings multiple suggests that any improvement in Target's business could result in a significant increase in stock value [17].
Target to expand next-day delivery service to 35 US metro areas
Yahoo Finance· 2025-09-18 11:10
American retailer Target is set to expand its next-day delivery service for online orders to 35 major US metropolitan areas by the end of October. The expansion will cover cities such as San Francisco, Chicago and Los Angeles, along with several other key cities in the US. Customers in these areas will be able to receive their purchases the following day. The retailer has stated that most items available for shipping, which represent the majority of products sold in its stores, will be eligible for this ...
X @Forbes
Forbes· 2025-09-18 06:30
Katie’s Frozen Pizzas Land At Target With $20 Million Retail Deal https://t.co/Bg4yFvl02Y https://t.co/sBQfvWMMRh ...
Jim Cramer Discusses Target Corporation (TGT) And Turnarounds
Yahoo Finance· 2025-09-17 17:13
We recently published 10 Latest Stocks Jim Cramer Discussed In An Episode Examining Turnarounds. Target Corporation (NYSE:TGT) is one of the stocks Jim Cramer recently discussed. Cramer discussed Target Corporation (NYSE:TGT) in the context of turnarounds. The discussion on turnarounds started when he and co-host David Faber commented on V.F. Corporation. Cramer commented that he loves turnarounds even though they are hard to execute. For Target Corporation (NYSE:TGT), he mentioned a note that had outline ...