Monksdream
9 months ago
Target Corporation Reports Fourth Quarter and Full-Year 2023 Earnings
March 05 2024 - 06:30AM
PR Newswire (US)
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MINNEAPOLIS, March 5, 2024 /PRNewswire/ --
Q4 2023 Highlights
Comparable sales and traffic trends improved sequentially for the second quarter in a row.
Same-day services (in-store pickup, Drive Up, and Shipt), which represent more than 10 percent of total sales, increased 13.6 percent in the quarter, led by growth in Drive Up.
GAAP and Adjusted EPS1 of $2.98 was 57.6 percent higher than last year, and well-above the high end of the expected range of $1.90 to $2.60.
Full-Year 2023 Highlights
Full-year GAAP and Adjusted EPS of $8.94 were both nearly 50 percent higher than in 2022.
The Company's operating income margin rate of 5.3 percent was nearly two percentage points higher than last year. Operating income dollars grew by nearly $2 billion compared with 2022, well-above expectations.
The Company's efficiency efforts delivered savings of more than $500 million in 2023.
Cash from operations more than doubled from $4.0 billion in 2022 to $8.6 billion in 2023.
The team maintained appropriate inventory levels by category throughout the year, resulting in lower markdown rates, more effective operations, and stronger in-stock measures compared with 2022.
DiscoverGold
11 months ago
Several retailers raised at Morgan Stanley on improving fundamentals
By: Investing | January 16, 2024
Morgan Stanley analysts upgraded Target (TGT), Dollar General (NYSE:DG), Walmart (NYSE:WMT), and Valvoline (NYSE:VVV), citing “achievable ‘24 estimates combined with stronger ’25 EPS growth.”
Simultaneously, Morgan Stanley also downgraded Tractor Supply (NASDAQ:TSCO) and Driven Brands Holdings (DRVN).
The analysts noted a slightly more favorable fundamental view, driven by three key inflections, including “lower rates, bottoming in durables and a late ’24/early ’25 housing inflection.”
“We are modeling sales-weighted SSS growth of +2.3%/+3.3% in '24/'25 (vs. +1.9% in ‘23),” the analysts wrote in a note.
The team said that the stocks are already reflecting the improvements, primarily due to multiple expansion in November/December. Valuations are now in line with historical P/E ratios and approximately 5% above on EV/EBITDA.
Meanwhile, the consumer sector remains under pressure, especially the "goods" consumer, and durable goods reversion is continuing. The analysts expect flattish durables growth in '24, leading to an improving but still a below-average year, “while ’25 doesn’t look robust either — tempering our enthusiasm.”
Key points in Morgan Stanley’s outlook include “1) Reversion revisit with updated category growth forecasts. 2) Sales analyses to determine achievability of '24 top-line estimates. 3) Seven margin deep dives: freight, inventory/promotions, deflation, e-commerce, shrink, product mix, incentive comp.”
The strategists raised their price target on TGT to $165 from $140, implying an upside of more than 17% from the current price.
“With our broader stock preferences shifting to be more risk-on/cyclical, TGT screens as an attractive investment given its latent earnings potential both on a recovery from idiosyncratic challenges and from a rebound in discretionary spend,” the analysts concluded.
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DiscoverGold
1 year ago
Franklin Resources Inc. Has $1.18 Billion Stake in Target Co. (TGT)
By: MarketBeat | November 23, 2023
• Franklin Resources Inc. boosted its stake in shares of Target Co. (NYSE:TGT) by 35.4% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 8,973,381 shares of the retailer's stock after buying an additional 2,343,668 shares during the quarter. Franklin Resources Inc. owned approximately 1.94% of Target worth $1,183,589,000 as of its most recent SEC filing...
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DiscoverGold
1 year ago
Target shares surge on margin improvement, inventory drawdown
By: Investing | November 15, 2023
(Reuters) -Target on Wednesday forecast holiday-quarter profit largely above analyst expectations as supply chain costs finally eased and its efforts to control inventory started to pay off, sending shares up 17%.
The big-box retailer's stock has lost a quarter of its value in a turbulent year marked by elevated inflation. Shoppers have focused on food and essentials purchases while spending less on home goods, electronics, toys and apparel.
Economists estimate this year's holiday season will be less robust than in 2022, and Target CEO Brian Cornell on a post-earnings call said shoppers are delaying purchases until the last minute.
Cornell noted, for example, that the chain is seeing people put off buying sweatshirts or denim usually bought in August or September to later in the season.
Target sales declined by an average 7% in August and September alongside declines in transaction count and value, TD Cowen said in a note ahead of its earnings. Target offered back-to-school deals during this period.
Cornell cautioned that although shoppers are still spending, the company was not out of the woods as higher interest rates, the resumption of student loan repayments, increased credit card debt and reduced savings keep up the pressure.
"This is a clear indication of the pressures they're facing as they work to stretch their budgets until the next paycheck," he said.
To adapt to this shifting behavior, Target said it would place a big focus on value, for example, offering over two-thirds of its holiday toy collection and holiday decorations priced below $25 and $20, respectively.
This includes an exclusive FAO Schwarz toy collection, with 50% of the assortment under $20 and $15 ornament sets and baking products and $10 throw pillows and tree skirts.
The company is also offering four weeks of deals leading up to Black Friday where it plans to showcase its new collections with Kendra Scott jewelry, Fenty Beauty and an exclusive kitchenware brand called Figmint.
Gross margins improved to 27.4% from 24.7% a year earlier, due to fewer discounts, a 14% reduction in inventories and related costs, and lower freight, supply-chain and delivery expenses.
Shares rose more than 17% on Wednesday, making it the biggest gainer in the S&P 500 index and putting it on track for its largest one-day gain in more than four years.
"Investors are rewarding the stock because it is getting better than where it came from," said Brian Mulberry, a client portfolio manager at Zacks Investment Management.
Target's stock is cheap with a price to earnings (P/E) ratio of 12.83 compared to Walmart (NYSE:WMT)'s 23.93 and the sector benchmark, the S&P 500 Consumer Staples Merchandise Retail's 36.62, according to LSEG data.
CONSUMER PRESSURE
Price pressures are starting to ease ahead of the holidays. U.S. Commerce Department data showed that consumer prices didn't change in October, with the annual rise in underlying inflation at its lowest in two years.
On Wednesday, Target forecast adjusted earnings to land between $1.90 and $2.60 per share in the fourth quarter. The midpoint of that range topped analysts' expectations of $2.22 per share, according to LSEG data. It also expects holiday-quarter comparable sales to decline in the mid-single-digit percentage range, compared with expectations of a 3.97% drop.
Dave Wagner, equity analyst and portfolio manager at Aptus Capital Advisors said the wide range of Target's outlook showed that executives had "no clue" on what to expect this holiday season.
Target has faced unique challenges this year including backlash in May over its LGBTQ-themed merchandise and a spike in retail thefts that it said led it to shut nine stores in New York, San Francisco, Seattle, and Portland, Oregon.
On Wednesday, executives said inventory losses caused by issues including theft and accounting errors had decreased and would not be as bad in the fourth quarter compared to prior quarters, in part due to tight control on inventories.
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Agoura Guy
1 year ago
HEADLINE: " Mother Orders Book from Target, Instead Gets Disturbing Erotic Novel About Killing Children"
After receiving a notification that her book had been delivered on Friday, Rachel Krichevsky rushed home to open up the Target package containing her new romance novel — or so she thought.
“As soon as I got home, I opened the package to find that not only was the wrong book delivered but to my repugnance, it turned out to be a book categorized as ‘extreme horror’ containing content such as, but not limited to: Pedophilia, sexual assault, incest, torture, kidnapping, physical abuse and animal cruelty all described in graphic detail each involving young children,” Krichevsky told The Western Journal via email.
For the unfamiliar, “extreme horror” is a very niche genre of literature categorized by extremely graphic and detailed descriptions (leaving things to the imagination is not this genre’s strong suit) of whatever horror was happening in a given moment.
As to the book Krichevsky received? It was “Playground” by Aron Beauregard.
Despite the fun and family-friendly sounding name of this extreme horror novel, the cover (which The Western Journal won’t link to, due to its disturbing nature) makes it pretty clear this is a deeply disturbing and macabre tale.
The cover of the book, ostensibly the very first thing that Krichevsky saw upon opening her package, depicts a young girl at the top of a playground slide that has saw blades protruding out of it. Strewn all across the slide and ground are blood, guts and a dismembered foot.
“As well as a paragraph after the acknowledgments page that states, ‘This book contains scenes of graphic violence involving children.’ Giving absolutely no specific detail to the extent of what readers of all ages are actually getting into. Absolutely zero emphasis on children being sexually assaulted, tortured, and put in incestual situations.
“With great concern for the innocence of children and the increasingly growing culture of allowing pedophilia to be normal, I feel this must be stopped, using this book and situation as a prime example,” Krichevsky wrote.
WHAT'S WRONG WITH THESE SICKOS????
NO WONDER TARGET IS HEADING TOWARDS BANKRUPTCY!!!!!!!!!
DiscoverGold
1 year ago
Target (TGT) upgraded at BofA on improved risk/reward outlook after stock selloff
By: Investing | October 12, 2023
Bank of America analysts upgraded Target (NYSE:TGT) stock to Buy from Neutral with a price target raised by $15 to $135 per share.
The analysts argue that a recent stock selloff creates an attractive buying opportunity. Target shares are down about 20% in the last 3 months.
“With the stock trading at just 12x 2yr forward earnings, we believe the risk/reward outlook has improved and see catalysts that could drive upside to our modestly above-consensus EPS estimates as well as P/E multiple expansion,” the analysts said in a note.
Bank of America's forecast for the second half assumes a -5% decline in comparable sales, which is in line with Bloomberg Second Measure's observed credit and debit card sales and transactions, showing a low-single-digit percentage decrease year-to-date through October 1.
However, there is potential for observed transactions to improve sequentially following Target Circle Week, which ran from October 1 to October 7 and featured extra days and additional promotional items compared to the previous year.
The outlook suggests that traffic may continue to improve into the fourth quarter of 2023 as Target fully laps the previous year's inventory actions and apparel/home promotions through the third quarter and compares against a fairly rational promotional environment from the prior year.
Digital traffic is expected to benefit from the launch of Drive Up Starbucks (NASDAQ:SBUX) in the third quarter and returns in the first quarter. Net favorability and purchase consideration data from Morning Consult also indicate the possibility of ongoing traffic improvement.
“We see GM upside opportunities from: 1) freight & transportation cost recovery, 2) the non-recurrence of various inventory reduction costs LY, 3) the continued rollout and ramp up of flow centers and sortation centers, and 4) the shift back to more profitable in-store and same-day digital transactions (esp. Drive Up),” the analysts concluded.
TGT shares rose 2.4% premarket on the upgrade news.
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DiscoverGold
1 year ago
KG&L Capital Management LLC Has $1.54 Million Holdings in Target Co. (TGT)
By: MarketBeat | September 30, 2023
• KG&L Capital Management LLC trimmed its position in shares of Target Co. (NYSE:TGT) by 37.4% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 11,668 shares of the retailer's stock after selling 6,958 shares during the period. KG&L Capital Management LLC's holdings in Target were worth $1,539,000 at the end of the most recent quarter...
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DiscoverGold
1 year ago
Target to shut 9 stores across 4 US states amid rising retail crime
By: Investing.com | September 26, 2023
(Reuters) - Target said on Tuesday it would close nine stores across four U.S. states, including California, citing that theft and organized retail crime was threatening the security of the retailer's employees and customers.
The move, effective Oct. 21, will see the closing of one store in New York City, two in Seattle, three locations across the San Francisco and Oakland markets and three in Portland.
Despite heavy investments in security, the company continued to face "fundamental challenges" to running the stores safely, the retailer said. It operates nearly 2,000 stores across the United States.
"We cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance," Target said in a statement.
Theft and retail crime has become an increasingly pressing issue for U.S. retailers, with organized crime rings targeting retail inventories and causing more financial loss to companies.
A report by the National Retail Federation (NRF), a trade association, earlier on Tuesday showed inventory "shrink" as a percentage of total retail sales accounted for $112.1 billion in losses in 2022, up from $93.9 billion in 2021.
Minneapolis, Minnesota-based Target said it would work with all eligible employees at the affected locations to offer opportunities for transfer to other Target locations.
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DiscoverGold
1 year ago
Eisler Capital US LLC Acquires 10,000 Shares of Target Co. (TGT)
By: MarketBeat | September 9, 2023
• Eisler Capital US LLC grew its holdings in shares of Target Co. (NYSE:TGT) by 50.0% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 30,000 shares of the retailer's stock after acquiring an additional 10,000 shares during the period. Target comprises approximately 0.4% of Eisler Capital US LLC's holdings, making the stock its 17th largest position. Eisler Capital US LLC's holdings in Target were worth $4,969,000 as of its most recent SEC filing...
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DiscoverGold
1 year ago
Target CEO Brian Cornell sells another $3,921,135 in shares with the stock trading into multi-year lows...
By: TrendSpider | August 26, 2023
• $TGT Target CEO Brian Cornell sells another $3,921,135 in shares with the stock trading into multi-year lows...
Doesn't exactly instill confidence in investors.
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Agoura Guy
1 year ago
Target Being Sued by Shareholder After Hemorrhaging $14 Billion.
Target is being sued for allegedly betraying its core customer base by continuing to sell LGBT Pride gear — including designs from a Satan-lover — in spite of the company’s hemorrhaging loss in the stock market.
The lawsuit was filed by conservative legal firm American First Legal on behalf of investor Brian Craig, who in April 2022, spent $50,000 for 216.50 shares of Target. The nonprofit organization is led by Stephen Miller, a former adviser to ex-President Donald Trump.
Shannon Thaler from the New York Post reported:
By April 2023, the value of Craig’s holdings fell to $34,839, and then dropped to $28,896 by June 14 — in the middle of Pride Month, as Target was in the middle of a boycott triggered by a collection that included children’s book titled “‘Twas the Night Before Pride,” and a handful of T-shirts donning LGBTQ-friendly slogans, like “live laugh lesbian.”
Target’s “board of directors betrayed both Target’s core customer base of working families and its investors by making false and misleading statements concerning Target’s environmental, social and governance (ESG) and diversity, equity and inclusion (DEI) mandates that led to its disastrous 2023 children-and-family themed LGBT Pride campaign.”
The lawsuit asserted that Target led “shareholders to unknowingly support Target’s board and management in their misuse of investor funds to serve its divisive political and social goals — and ultimately lose billions.” American First Legal alleges that Target “continued the LGBT-Pride campaign and continues to sell products associated with the campaign, causing further damage to Target’s stock price.”
Gene Hamilton, vice president and general counsel of American First Legal, addressed the company’s violation of rules in the Securities Exchange Act of 1934 in a press release:
Federal law requires publicly-traded corporations to provide certain information to shareholders in their proxy statements that allow those shareholders to make informed decisions. As alleged in our complaint, Target failed to execute its duty to its shareholders.
Since introducing the PRIDE apparel, Target has lost $14 billion in market value.
In its latest quarterly report, Target said sales declined. Company officials said the decline was due, in part, to customer reactions and boycotts stemming from its Pride month activities. Shares of the company are down 4.7 percent over the past month and have fallen 15.8 percent so far in 2023.
DiscoverGold
1 year ago
Target (TGT) jumps 9% on better-than-feared results, guidance
By: Investing.com | August 16, 2023
Target Corporation (NYSE:TGT) shares rose 8.8% in early Wednesday trade after the company reported results for its second quarter.
Target's comparable sales experienced a decline of 5.4% in the second quarter, worse than the expected 3.8% decline. Revenue reached $24.8 billion, a decrease of 4.9% compared to the previous year and below the expected $25.33B.
Gross margin improved to 27%, surpassing last year's 21.5% and exceeding the estimated 25.6%.
Adjusted earnings per share came in at $1.80, easily ahead of the expected $1.47.
Brian Cornell, chair and chief executive of Target Corporation, said, "Our second quarter financial results clearly demonstrate the agility of our team and the resilience of our business model, as we saw better-than-expected profitability in the face of softer-than-expected sales.”
“With the benefit of a much-leaner inventory position than a year ago, the team was able to quickly respond to rapidly-changing topline trends throughout the second quarter, while continuing to focus on the guest experience."
For this quarter, the company anticipates its adjusted EPS to be in the range of $1.20 to $1.60. Analysts were looking for $1.84.
For FY24, Target revised its prior EPS range of $7.75-8.75 to $7.00-8.00, with the midpoint of the new range coming in below the expected $7.81.
Analysts were widely expecting Target to lower its guidance with the delivered cut seen by the market as better than feared.
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1 year ago
Target set to post first quarterly revenue drop in six years as consumers cut spending
By: Investing.com | 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.
THE CONTEXT
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.
THE FUNDAMENTALS
** 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
WALL STREET SENTIMENT
** 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
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DiscoverGold
1 year ago
Target Q2 earnings preview: Analysts anticipate softness, cut price target
By: Investing.com | August 11, 2023
Target (NYSE:TGT) is due to report its second quarter earnings on Wednesday, August 16. The stock was the subject of at least 4 analyst downgrades since June.
Moreover, several analysts lowered their price targets this week in anticipation of a soft earnings report.
Barclays analysts cut the price target by $21 to $142 per share as they believe sales slowed in Q2. They see these 3 key questions dominating the earnings call next week.
1) Whether the company can support EPS during this weaker period;
2) The composition of the slowdown as we look for cues for a recovery;
3) How the market share story has evolved even before the recent slowdown.
Similarly, Telsey Advisory Group analysts lowered the PT by $20 to $165 per share.
“We are lowering our 2Q23 estimates to reflect softness in traffic, especially in late May to mid-June related to issues with the Pride assortment, along with softer consumer spending on select discretionary products, partly offset by the continued outperformance of essentials and gains from strategic initiatives, like digital and loyalty. Furthermore, the softer spending on discretionary could continue in 2H23 and pressure results,” the analysts wrote in a note.
“That said, we believe these soft trends are largely priced in the stock at current levels.”
Target shares are down over 12% year-to-date.
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