Key Stats for Target Stock
- Price Change for Target stock: -3%
- $TGT Share Price as of Nov. 19: $86
- 52-Week High: $145
- $TGT Stock Price Target: $100
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What Happened?
Target (TGT) stock hit a new 52-week low on Wednesday after the retailer reported third-quarter results that showed continued sales struggles and lowered its full-year profit guidance.
The company posted adjusted earnings of $1.78 per share on revenue of $25.27 billion, beating earnings estimates of $1.71 per share but missing revenue expectations of $25.29 billion.
Comparable sales fell 2.7%, marking the third consecutive quarter of declines. Traffic dropped 2.2% and average transaction values declined 0.5% as shoppers made fewer trips and spent less when they did visit. Net income tumbled 19% to $689 million from $854 million in the year-ago period.
Target lowered its full-year adjusted earnings guidance to $7 to $8 per share, down from $7 to $9. The new range implies earnings below last year’s $8.86, reflecting ongoing pressure from weak discretionary spending.
The company maintained its fourth-quarter sales guidance, expecting a low single-digit decline for the critical holiday period.
Incoming CEO Michael Fiddelke, who takes over from Brian Cornell on February 1, laid out plans to increase capital expenditures by 25% to $5 billion next year.
The investment will focus on store remodels, new locations, and technology upgrades as the company tries to regain its footing after four years of stagnant sales.
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What the Market Is Telling Us About Target Stock
The nearly 3% drop in Target stock reflects investor frustration with a turnaround that has continued to stall.
The retailer has been losing market share as it struggles to recapture what once made it special: stylish merchandise, well-organized stores, and excellent customer service.
Fiddelke outlined three priorities for fixing the business: strengthening Target’s design-led merchandising authority, providing a consistently elevated shopping experience, and leveraging technology to drive efficiency.
The company recently cut 1,800 corporate jobs, about 8% of its headquarters workforce, to remove layers and speed up decision-making.
The Fun 101 initiative, which transformed the Hardlines business, delivered growth led by nearly 10% comparable sales in toys and double-digit growth in sporting goods.
Food & Beverage posted another quarter of growth, with beverages up nearly 7% as customers gravitated toward health and wellness products.
Digital sales grew 2.4%, driven by 35% growth in same-day delivery.
While apparel comps fell 5%, denim and sleepwear showed strength where Target invested in trend-forward products.
Home continues to struggle, though the company plans a major reset of that category next year. Management said shoppers are selective even during peak seasonal moments, buying candy for Halloween but skipping decorations.
Target stock has plunged 67% from its all-time high in late 2021 as the retailer faces stiffer competition and a consumer stretched thin by inflation.
The retail giant is making progress on operational basics, such as in-stock levels, which improved by 150 basis points for the 5,000 most essential items.
Target is betting heavily on technology to accelerate change. Target introduced AI-powered tools like Target Trend Brain to help merchants identify emerging trends faster and synthetic audiences to test products before launch.
It’s also partnering with OpenAI to enable shopping directly through ChatGPT, making Target one of the first retailers to offer multi-item purchases and grocery shopping on the platform.
Fiddelke declined to say when Target stock investors should expect sales to turn positive again, but emphasized the team is “focused every day on making the right investments” to return to growth.
The company plans to roll out more store changes next year than in any of the past decade, including major resets in Home, Baby, and the space currently occupied by Ulta Beauty after that partnership ends in August 2026.
Target stock remains down 35% year to date as it works through its transformation. With $5 billion in capital spending planned for next year and a new CEO taking over in February, investors are waiting to see if the turnaround plan can finally gain traction and return the retailer to sustainable growth.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
