Target(US:TGT) Benzinga·2025-08-20 16:03Core Insights - Target Corp (TGT) shares experienced a significant decline of 7.72% to $97.25 following the release of its second-quarter results, indicating bearish market sentiment [1][5]. Financial Performance - Target reported second-quarter adjusted earnings of $2.05 per share, aligning with consensus estimates. However, same-store sales contracted by 1.9%, which was better than the expected 3.2% decline, driven by a 1.3% drop in traffic and a 0.6% decrease in ticket size [2]. - The gross margin contracted to 29%, attributed to higher markdowns, purchase order cancellation costs, and pressure from category mix [3]. Management Changes - The company announced the departure of CEO Brian Cornell, with COO Michael Fiddelke set to take over the role. This change suggests that Target will continue to focus on discretionary categories to differentiate itself from competitors like Amazon and Walmart [3][5]. Market Expectations - Despite mixed quarterly results, Target maintained its full-year guidance, with current market expectations positioned at the low end of this guidance, indicating potential for upward revisions post-earnings [4]. - Analysts from BofA Securities and JPMorgan provided differing ratings, with BofA maintaining an Underperform rating and a price target of $93, while JPMorgan reiterated a Neutral rating [7].