Key Stats for Target Stock
- Price Change for Target stock: -6%
- Current Share Price: $99
- 52-Week High: $162
- $TGT Stock Price Target: $104
What Happened?
Target (TGT) stock fell more than 6% on Wednesday despite beating Wall Street expectations for both earnings and revenue in its fiscal second quarter.
The retailer posted adjusted earnings of $2.05 per share versus the $2.04 expected, while revenue of $25.21 billion topped the $24.90 billion consensus estimate.
However, investors focused on the underlying business challenges rather than the modest beats. Comparable sales declined 1.9% year-over-year, with customer transactions dropping 1.3% and average transaction values falling 0.6%.
The company also announced major leadership changes, with Chief Operating Officer Michael Fiddelke set to become CEO on February 1, succeeding Brian Cornell, who will transition to executive chair.
Adding to investor concerns, Target and Ulta Beauty announced they are ending their partnership that placed mini beauty shops in nearly a third of Target’s stores.
The deal, which was viewed as a traffic driver and boost to Target’s beauty category, will conclude in August 2026. Store traffic has declined almost every week since late January, according to analytics firm Placer.ai.
See analysts’ growth forecasts and price targets for Target stock (It’s free!) >>>
What the Market Is Telling Us About Target Stock
The Target stock selloff reflects investor disappointment that the retail giant’s turnaround efforts have yet to gain meaningful traction despite four years of roughly stagnant sales performance.
While the company reaffirmed its full-year guidance, expecting a low single-digit sales decline, the market appears skeptical about the retailer’s ability to return to growth in the near term.
Incoming CEO Fiddelke acknowledged the company is “far from satisfied” with current performance and outlined three priorities: reestablishing Target’s merchandising authority with stylish products, providing more consistent customer experiences, and leveraging technology more effectively.
However, his admission that Target “lost some of our fashion and design leadership” in key categories like home goods highlights the depth of challenges facing the retailer.
The 60% decline in Target stock from its 2021 highs reflects broader concerns about its competitive positioning amid ongoing traffic declines, tariff pressures affecting about half of its imported merchandise, and the loss of unique traits that historically differentiated it from competitors.
While digital sales growth of 4.3% and strong performance in non-merchandise revenue streams like advertising provide some bright spots, investors appear focused on the core retail business’s struggles to regain momentum.
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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!
