InvestorsHub Logo
Followers 676
Posts 139455
Boards Moderated 46
Alias Born 03/10/2004

Re: None

Monday, 08/14/2023 10:08:15 AM

Monday, August 14, 2023 10:08:15 AM

Post# of 684
Target set to post first quarterly revenue drop in six years as consumers cut spending
By: | August 14, 2023

(Reuters) - Target is expected to post its first quarterly drop in revenue in about six years when it reports results on Wednesday, as the big-box retailer reels from a shift in consumer spending away from discretionary goods to services.

In recent months, consumers have been spending more on services such as travel and entertainment, while cutting down on non-essential purchases including clothing and home goods amid high inflation.

"Target is going to suffer more versus the others because they have a much larger consumer discretionary element to their business," Edward Jones analyst Brian Yarbrough said.

At least 16 analysts have cut their price targets on the retailer since the beginning of June as its merchandise is skewed towards discretionary items such as clothes, electronics and beauty products.


Target in May had warned of dour second-quarter results as inflation forces consumers to shun non-essential goods.

Mastercard (NYSE:MA) and American Express (NYSE:AXP) in their latest quarters also noted a slowdown in purchases of big-ticket items, even as spending on travel and entertainment remained robust.

A recent backlash over Target's Pride collection is also expected to impact its second-quarter sales.

The company, which has been selling Pride-related products for years, said in May it was making "adjustments" to its Pride merchandise, including removing some items from transgender designer Erik Carnell's Abprallen brand, in response to an increase in customer-employee altercations.

"There were some of the more extreme, anti-pride people, who were threatening violence, and so there was concern from some people for, you know, initially to go to the store," said Telsey Advisory Group's Joseph Feldman, adding that traffic was under pressure in June.

Jane Hali & Associates senior analyst Jessica Ramirez added more caution, saying customers might not necessarily spend extra on things that may not be used or needed this back-to-school season.


** Target is expected to report Q2 results on Aug. 16 before market opens

** Its Q2 revenue is expected to fall 3.3% to $25.18 billion, according to analysts polled by Refinitiv

** Q2 profit per share is expected to be $1.39

** Rival Walmart (NYSE:WMT) is scheduled to report on Aug. 17


** Target shares have lost more than 12% so far this year

** The S&P 500 Consumer Discretionary Distribution & Retail index has climbed more than 31% year to date

** The current average rating of 37 analysts on Target stock is "buy", with 17 rating it "buy" or higher - Refinitiv

** The median price target is $162

Read Full Story »»»


Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold

Day Range:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
Recent TGT News