Latest news with #BrianCornell
New York Post
3 days ago
- Business
- New York Post
Target CEO blames lousy earnings on anti-woke ‘headwinds' — and Wall Street is chuckling
Investors and traders got a good laugh last week when Target's CEO Brian Cornell suggested that a lousy quarter was partly the result of a consumer backlash against the retailer for rolling back its DEI efforts, On The Money has learned. DEI, or Diversity Equity and Inclusion, is a management philosophy that says pure merit-based hiring is overrated. Instead, companies must tailor their workforces to match an intersectional matrix — skills be damned. DEI also holds sway over ads, marketing and other corporate functions. Under Cornell, Target went all in on DEI, most infamously in its Pride celebrations, a corporate marketing and sales effort that targeted the LBGTQ+ community. Nothing wrong with that – unless you do it in a way that spoils the shopping experience of most of your customers. Target CEO Brian Cornell suggested that a lousy quarter was partly the result of a consumer backlash against the retailer for rolling back its DEI efforts. Jack Forbes / NY Post Design Those are mainly working class people who just want to buy Target's low-priced goods and didn't want the company to proselytize to them about gender fluidity – particularly when they show up to a store with their kids. As I wrote in my book 'Go Woke Go Broke: The Inside Story of the Radicalization of Corporate America,' Target and Cornell were on the cutting edge of the woke movement and took it to disastrous extremes. Google the product known as the 'tuck-friendly bathing suit' and you will get the full story so I don't have to recite the gory details. In 2023, a full-on customer revolt ensued, and let's say Target never recovered. Earlier in the year, Target took note and began to unwind some of its DEI policies. Gone also were the flamboyant Pride displays. DEI in hiring was rolled back after the courts ruled that discriminating based on race is illegal, and the Trump administration announced it will enforce these edicts. Now, if Cornell is to be believed, Target is suffering from what might best be described as a counter-customer revolt. Our very own Rev. Al Sharpton believes DEI is a civil right, and recently said he would support a boycott of Target stores. Rev. Al Sharpton recently said he would support a boycott of Target stores. Getty Images Target's latest quarterly earnings of $1.30 a share and revenue drop to $23.8 billion both missed estimates – and by a lot. All this and the impact of the Trump tariff increases hasn't totally settled in. Cornell's explanation to investors for all of the above: Ending DEI and becoming less political represented a 'headwind.' That's why investors and traders who spoke to On The Money are getting a chuckle out of Cornell's rationalization. It makes no sense because Target has been flailing for a while, mostly after it went all in on woke. As my pal the 'Sarge,' the veteran trader and investor Stephen Guilfoyle, wrote in The 'For Target, this was the third quarter in five that the firm failed to both meet Wall Street's projections for adjusted profitability and Wall Street's expectations for total revenue generation. Going further back, Target has failed to meet earnings expectations for six of the past 13 quarters.' On The Money asked a Target rep how Cornell could be so sure DEI headwinds, and not management ineptitude (analysts say its stores are in need of a massive upgrade), are to blame for the lousy first-quarter results. We will let you know what they say when (if) they get back to us.
Forbes
6 days ago
- Business
- Forbes
Target Blames Tariffs, Response To DEI Rollback For Lower Sales
This is a published version of Forbes' Careers Newsletter. Click here to subscribe and get it in your inbox every Tuesday. Target sales and revenue slumped in the first quarter of the year thanks to tariff costs, lower ... More discretionary spending and consumer boycotts over DEI rollbacks. Retail giant Target reported its first-quarter earnings last week, which showed sales and revenue numbers falling well below expectations as the company also warned that its yearly sales will likely decline in 2025. The retailer says that uncertainty over tariffs and boycotts stemming from its rollback of diversity, equity and inclusion programs are to blame for the lower financial numbers. Target's financials have been closely watched by more than just those in the retail sector. The company was one of the first major public businesses to 'phase out' DEI initiatives in January, cutting internal diversity metrics, programs for minority suppliers and corporate sponsorships. A massive consumer boycott soon followed. The Rev. Jamal Bryant, a prominent Atlanta pastor, called for a nationwide fast on purchases from the retailer for Lent. After meeting with Target CEO Brian Cornell in April, the two could not come to a resolution to the boycott. And there are signs that the anti-Target sentiment will continue. Bryant called for another boycott on Sunday, the fifth anniversary of George Floyd's murder, which sparked a number of protests around the country in 2020 and led many companies to increase their DEI programs at the time. Target's financial hit is perhaps a sign to other companies of the potential impacts of rolling back DEI measures. But Target also faces softer spending on all discretionary items and a decline in consumer confidence, so multiple issues are at play for the retail giant. Happy reading, and hope you have a lovely unofficial start of summer! Practical insights and advice from Forbes staff and contributors to help you succeed in your job, accelerate your career and lead smarter. Learning to manage stress early on in your career is critical to your growth. Here are the five times that leaving a job without another one lined up makes sense. Using AI tools for interview prep can be helpful, but try not to sound too much like a robot. From sage advice from Kermit the Frog to plagiarized speeches, graduation season often brings along a load of questionably-solicited career advice. Forbes sifted through the speeches of this year's most celebrated speakers to pick out the best bits of wisdom. A short excerpt of the top pieces of advice is below, and you can read our full roundup here. It's been a tough year for higher education. Between a crackdown of student protests and rollbacks in funding, administrators and students are wary and weary. So it's no surprise this year's commencement advice felt tamer. Yes, there was some controversy, as student speakers voiced their disapproval with their universities' stances on the war in Gaza. And one commencement speaker—musician Evelyn Harris at Smith College—relinquished her honorary degree after admitting that parts of her speech were plagiarized. But most speakers stuck to offering useful life and career advice to the class of 2025. Some touted the advantages of youth, but a lot the advice works for Gen Z's elders, too. Take Philadelphia Eagles' wide receiver A.J. Brown's message to Ole Miss graduates: 'Success isn't owned, it's rented.' It can feel wonderful to be at the top of the mountain of your career, but sustaining that success requires constant work on yourself. 'Watch your own film,' he said, because 'self-awareness is a leadership skill.' Or listen to Martina Cheung, president and CEO of S&P Global, who told George Mason's graduates to collect experiences over promotions. Many graduates are entering a competitive job market, tinted with the fear of AI replacing positions and a potential career slowdown during tough economic times. But Cheung says to not let those fears stop you from growing. 'If something is interesting, go for it,' she said. 'Don't worry as much about the prestige. If it captures your attention, it's going to get you where you want to go faster.' News from the world of work. Big investment bets and strong personal friendships led newcomers on this year's Midas List toward the top of the ranking, Stephen Pastis reports. Newcomers to Forbes' Midas List, which in collaboration with TrueBridge Capital Partners ranks the top venture capitalists in the world, include Chime early backer Larry Li, investor and former applied scientist Ilya Fushman, and Laude Ventures' Pete Sonsini. Steph Curry, Trae Young and other professional athletes are going back to school to recruit talent for their alma mater's teams. Four years after the NCAA first allowed its athletes to profit off their name, image and likeness, college sports teams are now hiring their former all-stars as assistant general managers to bring in new recruits, Forbes' Justin Birnbaum reports. Americans' earnings stalled in the past year, according to a JPMorgan Chase study. Adjusted for inflation, American workers across age and income groups saw their after-tax take-home pay grow more slowly than the economy as a whole since 2019. Meta is bleeding AI talent: According to a Business Insider report, 11 out of 14 researchers from the original Llama AI team have left for competitors. This comes at a time when the tech company appears to be ramping up its defense hiring. The Supreme Court ruled last week that President Trump doesn't have to rehire senior officials at two federal labor agencies—the National Labor Relations Board and the Merit Systems Protection Board. It's been a busy week for the president in court, with a federal judge blocking the administration's ban on international students at Harvard, and the Supreme Court halting the release of DOGE records, at least temporarily. You Don't Need A Degree To Start A Company Which of these career moves should you make to prepare for the next recession? A. Make yourself more visible at work B. Pre-emptively start looking for another job C. Check your company's priorities D. All of the above Check if you got it right here.
Yahoo
6 days ago
- Business
- Yahoo
This Dirt-Cheap Dividend King Stock Yields 4.7%. Here's Why It's Worth Doubling Up on in May.
Target is hovering around six-year lows. Guidance calls for a third consecutive year of negative growth. Target is trading at a historically low valuation. 10 stocks we like better than Target › In the span of just 52 weeks, Target (NYSE: TGT) has traded as low as $87.35 per share and as high as $167.40 per share. Unfortunately for investors, Target is hovering around the low end of that range at about $95 per share at the time of this writing. The sell-off in Target stock, paired with decades of dividend raises, has pushed Target's dividend yield up to a hefty 4.7%. Here's why Target is a dividend stock worth doubling up on in May, even though its challenges are far from over. On its latest earnings call, Target blamed weakening consumer confidence and tariffs on top of an extended period of inflation as reasons for its poor results. Target's first-quarter net sales were down 2.8% due to lower traffic. Target held or gained market share in 15 out of its 35 merchandising divisions. However, its goal is to grow market share across the majority of its assortment. On its first-quarter earnings call, Target said it was not satisfied with its first-quarter performance. Target CEO Brian Cornell said the following in Target's earnings press release: While our sales fell short of our expectations, we saw several bright spots in the quarter, including healthy digital growth, led by a 36% increase in same-day delivery through Target Circle 360, and our strongest designer collaboration in more than a decade, Kate Spade for Target. While these highlights reinforce our confidence in the underlying health of our business, we're not satisfied with current performance and know we have opportunities to deliver faster progress on our roadmap for growth. Although Target expressed accountability for the poor results and a plan for returning to growth, the company's updated guidance indicates the pain is far from over. Less than three months ago, Target forecast fiscal 2025 adjusted earnings per share of $8.80 to $9.80, net sales growth of around 1%, and a modest increase in operating margins compared to fiscal 2024. Now, Target is guiding for just $7 to $9 in fiscal 2025 adjusted EPS and a low single-digit decline in sales. What makes Target's significant guidedown even worse is that Target is coming off fairly weak comps in fiscal 2024 -- a year in which it grew comparable sales by just 0.1%, traffic by 1.4%, and booked $8.86 in adjusted EPS compared to $8.94 in fiscal 2023 adjusted EPS. Target's poor results are reflected in its flatlining sales growth and weak operating margins, which were rebounding nicely off their pandemic lows but have since stagnated. The silver lining is that Target's sales and earnings are still above pre-pandemic levels. And yet, its stock price is hovering around a six-year low -- indicating that investors have little confidence in Target's turnaround. The good news is that Target's valuation already reflects these concerns. Despite its weak results, Target is still a highly profitable company that can fund its growing dividend and its long-term growth efforts in new store openings, existing store remodels, technology, and supply chain improvements. The midpoint of Target's forecast adjusted EPS guidance of $8 per share is significantly higher than its $4.48 per share dividend payment. Typically, when a company is undergoing a turnaround and has a growing dividend, the dividend expense begins to balloon to a point where the company can barely afford it. But that isn't the case with Target. This is a company that has paid and raised its dividend for 53 consecutive years -- making it part of an elite group of companies known as Dividend Kings that have raised their payouts for at least 50 years. Over the decades, Target has raised its payout year after year, whether the economy was contracting or expanding. Even now, its dividend is affordable and sports a 4.7% yield. However, one of the best reasons to buy Target is for its valuation. Target would have a price-to-earnings (P/E) ratio of just 11.9 based on the midpoint of its adjusted fiscal 2025 earnings forecast and the stock price at the time of this writing of around $95 a share. That's a bargain-bin price for an established company like Target. For context, Target's 10-year median P/E is 15.6. Target continues to overpromise and underdeliver, so it's understandable why investors have grown impatient with the company. However, Target's valuation suggests it is facing an existential crisis -- and that's far from the case. Target needs a new strategy focused on leaning into what it does best, which is in-store experience, rather than trying to go toe-to-toe with Walmart and Amazon on value. Promotions are yet another way to differentiate Target from the competition. Target has had resounding success with partnerships in the past. Even in the latest quarter, Target's collaboration with Kate Spade was the most successful limited-time partnership Target has had in over a decade. In sum, Target has a clear path toward regaining its mojo. The stock is worth doubling up on in May for investors looking to buy a turnaround stock and generate passive income. However, some investors may prefer to keep Target on a watchlist until the company can prove its strategic initiatives translate to bottom-line results. Before you buy stock in Target, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Target wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Target, and Walmart. The Motley Fool has a disclosure policy. This Dirt-Cheap Dividend King Stock Yields 4.7%. Here's Why It's Worth Doubling Up on in May. was originally published by The Motley Fool
Globe and Mail
6 days ago
- Business
- Globe and Mail
This Dirt-Cheap Dividend King Stock Yields 4.7%. Here's Why It's Worth Doubling Up on in May.
In the span of just 52 weeks, Target (NYSE: TGT) has traded as low as $87.35 per share and as high as $167.40 per share. Unfortunately for investors, Target is hovering around the low end of that range at about $95 per share at the time of this writing. The sell-off in Target stock, paired with decades of dividend raises, has pushed Target's dividend yield up to a hefty 4.7%. Here's why Target is a dividend stock worth doubling up on in May, even though its challenges are far from over. Target just slashed its guidance On its latest earnings call, Target blamed weakening consumer confidence and tariffs on top of an extended period of inflation as reasons for its poor results. Target's first-quarter net sales were down 2.8% due to lower traffic. Target held or gained market share in 15 out of its 35 merchandising divisions. However, its goal is to grow market share across the majority of its assortment. On its first-quarter earnings call, Target said it was not satisfied with its first-quarter performance. Target CEO Brian Cornell said the following in Target's earnings press release: While our sales fell short of our expectations, we saw several bright spots in the quarter, including healthy digital growth, led by a 36% increase in same-day delivery through Target Circle 360, and our strongest designer collaboration in more than a decade, Kate Spade for Target. While these highlights reinforce our confidence in the underlying health of our business, we're not satisfied with current performance and know we have opportunities to deliver faster progress on our roadmap for growth. Although Target expressed accountability for the poor results and a plan for returning to growth, the company's updated guidance indicates the pain is far from over. Less than three months ago, Target forecast fiscal 2025 adjusted earnings per share of $8.80 to $9.80, net sales growth of around 1%, and a modest increase in operating margins compared to fiscal 2024. Now, Target is guiding for just $7 to $9 in fiscal 2025 adjusted EPS and a low single-digit decline in sales. What makes Target's significant guidedown even worse is that Target is coming off fairly weak comps in fiscal 2024 -- a year in which it grew comparable sales by just 0.1%, traffic by 1.4%, and booked $8.86 in adjusted EPS compared to $8.94 in fiscal 2023 adjusted EPS. Target's poor results are reflected in its flatlining sales growth and weak operating margins, which were rebounding nicely off their pandemic lows but have since stagnated. TGT Revenue (TTM) data by YCharts The silver lining is that Target's sales and earnings are still above pre-pandemic levels. And yet, its stock price is hovering around a six-year low -- indicating that investors have little confidence in Target's turnaround. The good news is that Target's valuation already reflects these concerns. Target can afford its sizable dividend Despite its weak results, Target is still a highly profitable company that can fund its growing dividend and its long-term growth efforts in new store openings, existing store remodels, technology, and supply chain improvements. The midpoint of Target's forecast adjusted EPS guidance of $8 per share is significantly higher than its $4.48 per share dividend payment. Typically, when a company is undergoing a turnaround and has a growing dividend, the dividend expense begins to balloon to a point where the company can barely afford it. But that isn't the case with Target. This is a company that has paid and raised its dividend for 53 consecutive years -- making it part of an elite group of companies known as Dividend Kings that have raised their payouts for at least 50 years. Over the decades, Target has raised its payout year after year, whether the economy was contracting or expanding. Even now, its dividend is affordable and sports a 4.7% yield. However, one of the best reasons to buy Target is for its valuation. Target would have a price-to-earnings (P/E) ratio of just 11.9 based on the midpoint of its adjusted fiscal 2025 earnings forecast and the stock price at the time of this writing of around $95 a share. That's a bargain-bin price for an established company like Target. For context, Target's 10-year median P/E is 15.6. Target has fallen far enough Target continues to overpromise and underdeliver, so it's understandable why investors have grown impatient with the company. However, Target's valuation suggests it is facing an existential crisis -- and that's far from the case. Target needs a new strategy focused on leaning into what it does best, which is in-store experience, rather than trying to go toe-to-toe with Walmart and Amazon on value. Promotions are yet another way to differentiate Target from the competition. Target has had resounding success with partnerships in the past. Even in the latest quarter, Target's collaboration with Kate Spade was the most successful limited-time partnership Target has had in over a decade. In sum, Target has a clear path toward regaining its mojo. The stock is worth doubling up on in May for investors looking to buy a turnaround stock and generate passive income. However, some investors may prefer to keep Target on a watchlist until the company can prove its strategic initiatives translate to bottom-line results. Should you invest $1,000 in Target right now? Before you buy stock in Target, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Target wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Target, and Walmart. The Motley Fool has a disclosure policy.
Daily Mail
7 days ago
- Business
- Daily Mail
Report: Target staff fear job losses amid sales slump
Published: | Updated: Another wrote: 'All we can do is ride it out and hope for the best. If it comes down to it, prepare a resume just in case.' Several workers have also posted TikTok videos showing backrooms overwhelmed with merchandise that hasn't made it to the sales floor — alleging that understaffing is leaving them buried. 'I hope these go viral so the corporate people might rethink how they unstaffed their stores and expect spotless departments,' one employee commented on a video showing mounds of backroom clothing. Target hasn't responded to request for comment on the employee predictions and complaints. But two days ago, the company released its quarterly earnings, which badly missed Wall Street's expectations. 'Target has found itself in a challenging position,' Neil Saunders, a retail expert at GlobalData, told 'The business is not terrible, but it is under pressure and that is causing nervousness among associates.' Fewer shoppers went into Target stores during the last quarter, and when they did, they spent less money. The company reported $23.85 billion in sales during the last quarter, a 2.8 percent drop from the previous three-month period. Analysts predicted the store would make $24.23 billion. So far this year, Target's share price has shed over 31 percent. 'I want to be clear, we're not satisfied with these results, so we're moving with urgency to navigate through this period of volatility,' Target CEO Brian Cornell said. 'We've got to drive traffic back into our stores or visits to our site.' The company also announced that it was paring back its financial outlook for 2025, signaling it believes a recovery might take a while. Target isn't in dire financial shape. The company made $5 billion in profit last year, and is still raking in money. But it's wobbles are in stark contrast to its biggest competitor, Walmart, which has reported gigantic sales figures. 'Underlying profit at Target is squeezed and that makes it more likely the company will be cautious in hiring and tight in the labor hours it allocates,' Saunders added. 'That makes staff worry for their own jobs. All of this is exacerbated because communication from management has, generally, been poor.' Target is dealing with other non-employment headwinds, too. Cornell joined Walmart and Home Depot's CEOs in a private White House meeting, warning President Donald Trump that his tariff regime threatened to deplete product availability and increase prices on consumers . The company has publicly warned that tariffs will slash billions from profits, making it harder to continue business investments. 'They have cancelled some remodels,' one Target employee claimed on Reddit. Another added: 'Sales are so low I would be shocked if it doesn't close sooner rather than later.' Plus, the brand is facing customer anger from both right- and left-leaning shoppers. Target walked back diversity, equity, and inclusion efforts in a pitch to appease the Trump administration. Conservatives have been boycotting the brand over Pride Month collections that included bathing suits for trans swimmers . Meanwhile, Target has already silently started increasing prices on products made in other countries. It's a particularly difficult time to balance higher prices in the US economy. Consumer confidence has slumped for five consecutive months , with shoppers reporting fears over continued inflation. American shoppers have been smacked with increasingly lofty grocery prices after the inflation rate peaked over 9 percent in 2022. Still, the overall economy has remained resilient despite the price hikes. American jobs have remained surprisingly steady and the average wage has continued with slow growth.
