Target is not out of the woods yet, says Bernstein's Zihahn Ma
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Yahoo
18 minutes ago
- Yahoo
Target Falls as Sales Decline Again, New CEO Named
This article first appeared on GuruFocus. Target (TGT, Financials) reported fiscal second-quarter earnings that beat Wall Street estimates but posted another sales decline, underscoring ongoing struggles at the Minneapolis-based retailer. Shares fell 9% Wednesday after the company also named Michael Fiddelke as its next CEO. Warning! GuruFocus has detected 5 Warning Signs with TGT. Fiddelke, Target's chief operating officer and former CFO, will succeed Brian Cornell on Feb. 1. Cornell, 66, will move to executive chair of the board. A 20-year company veteran, Fiddelke outlined priorities of restoring Target's design-led reputation, improving customer experience and leveraging technology for efficiency. Quarterly results showed profit of $935 million, or $2.05 per share, down from $1.19 billion, or $2.57 per share, a year earlier. Revenue slipped to $25.21 billion from $25.45 billion. Comparable sales fell 1.9% as store traffic and transaction size both declined. Margins were pressured by higher markdowns and customers shifting to lower-margin categories such as electronics and toys. Digital sales rose 4.3%, and nonmerchandise revenue, including advertising and membership programs, jumped 14.2%. Target reaffirmed its full-year outlook for a low single-digit sales decline and adjusted earnings per share of $7 to $9, excluding litigation gains. Annual sales have been flat for four years, with traffic falling nearly every week since January. Shares have dropped about 60% from their 2021 peak. Fiddelke said the company must recapture strengths in categories like home goods, where it lost ground to competitors. He pointed to recent additions of Disney and Marvel-themed kids' items as examples of how Target can regain momentum. Investors will watch whether Target can reverse declining traffic while navigating the CEO transition and winding down its in-store Ulta Beauty partnership next year. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
29 minutes ago
- Yahoo
S&P 500 Gains and Losses Today: Intel Stock Retreats; Analog Devices Jumps After Strong Earnings
Key Takeaways The S&P 500 declined 0.2% on Wednesday, Aug. 20, 2025, as tech stocks slid and minutes from the latest Federal Reserve meeting highlighted policymakers' concerns about tariffs and inflation. Intel stock gave back some of its recent gains as discussions about the U.S. government possibly acquiring an equity stake remained in focus. Analog Devices posted better-than-expected quarterly results, and shares of the chipmaker pushed higher. Major U.S. equities indexes were mixed on Wednesday as tech stocks slid and minutes from the latest Federal Reserve meeting highlighted policymakers' concerns about tariffs and inflation. The S&P 500 lost 0.2% Wednesday, marking the fourth straight losing session for the benchmark index. The tech-heavy Nasdaq fell 0.7%, while the Dow ended with a gain of less than 0.1%. Intel (INTC) stock gave back some of its recent gains, dropping 7% to log the S&P 500's weakest performance on Wednesday as discussions about the U.S. government possibly acquiring an equity stake remained in focus. The drop reversed the stock's jump yesterday after the announcement of a major investment by Japanese investment firm SoftBank (SFTBY). Shares of Micron Technology (MU) and other chipmakers with CHIPS Act grants also fell, following reports the Trump administration could look to strike similar deals with them as the one it's weighing with Intel. Micron shares lost 4%. Shares of Target (TGT) slipped 6.3% after the retailer said that CEO Brian Cornell would step down. Target tapped Michael Fiddelke—its current chief operating officer and a company veteran who has played a key role in plans to reshape operations—to take over the CEO role effective early next year. The announcement of the leadership change came as Target reported a decline in sales, though they topped analysts' expectations, and profits that matched estimates. Analog Devices (ADI) shares avoided the downward pressure on the broader semiconductor industry, surging 6.3% to notch the S&P 500's strongest daily gain. The manufacturer of sensor and power management chips topped quarterly earnings estimates, and provided a better-than-expected outlook. The company highlighted resilient demand trends despite trade-related uncertainty. Medtronic (MDT) shares added 3.7% after the medical device maker announced that it would add two new members to its board of directors following the accumulation of a significant position by activist investor Elliott Management. UBS and Wells Fargo lifted their price targets on Medtronic stock following the news. Shares of agribusiness and food products giant Bunge (BG) gained 3.1% as JPMorgan kicked off coverage of the stock with an "overweight" rating. Analysts indicated that the company could be set to benefit from policies related to biofuels in the U.S. potentially boosting demand for soybean oil. The firm also suggested efficiencies stemming from the acquisition of Netherlands-based Viterra could help drive Bunge's earnings growth. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
an hour ago
- Bloomberg
Stock Movers: Target, TJX, Coty
On this edition of Stock Movers: - Target (TGT) shares ended the day on the downside. This comes after the company named Michael Fiddelke as its next chief executive officer, betting that the insider will revive the storied retailer struggling with weak sales. The company said Wednesday the board unanimously elected Fiddelke, who currently serves as chief operating officer, to be CEO starting in February. He will also join Target's board, while current CEO Brian Cornell, who has led the big-box retailer since 2014, will transition to focus on his role as executive chair. - TJX (TJX) shares rose to a record high today after the off price retailer raised its full-year earnings per share outlook after better-than-expected results, a sign that shoppers wary of economic uncertainty are turning to discounters. The TJ Maxx and Marshalls parent now expects full-year earnings per share of $4.52 to $4.57, up from $4.34 to $4.43. The company said it assumed it will be able to offset the significant pressure it expects from tariffs throughout next year. Revenue of $14.4 billion in the three months ending Aug. 2 beat analysts' expectations. Chief Executive Officer Ernie Herrman said in the statement that the current quarter is 'off to a strong start.' - Coty (COTY) shares fell after forecasting steep sales declines will continue as retailers clear out existing inventory and consumer demand remains tepid in the face of an uncertain economic outlook. Shares sank 12% in post-market trading. Coty dropped 30% this year through Wednesday's close, compared with an 8.7% rise for the S&P 500 Index over that time. In the current quarter, like-for-like sales, which measures revenue from existing business units, will fall between 6% and 8%, the perfume and cosmetic seller said in a statement, more than consensus expectations for a 2.6% drop. The struggles come at the end of a five-year turnaround initiative aimed at reinvigorating growth and amid reports that the company is contemplating selling off its high-end brands to peer Interparfums Inc. The lower-end brands, which include Covergirl and Rimmel cosmetics alongside fragrances for Adidas and Nautica, could also be sold in a separate transaction, Women's Wear Daily said in June.
