Latest news with #CoreyTarlowe
Yahoo
22-05-2025
- Business
- Yahoo
Jefferies Raises PT on The Gap (GAP), Keeps Hold Rating
On May 21, Jefferies raised the price target on The Gap, Inc. (NYSE:GAP) from $26 to $29, keeping its Hold rating on the stock. Corey Tarlowe from Jefferies has lifted the price target on GAP ahead of its Q1 2025 earnings release on May 29. The analyst is optimistic about the company's sales and believes that the firm's updated pricing and discounts during the quarter suggest a more promotional environment. A customer shopping in a department store, browsing through racks of clothing. The Gap, Inc. projects its net sales to be flat to up slightly during Q1 FY2025 compared to net sales of $3.4 billion in Q1 FY2024. While the gross margin is expected to expand slightly from 41.2% in Q1 FY2024. Tarlowe highlighted that the Q1 data through April 29 shows that discounts across the company's apparel brands were up 1.3% year-over-year, while average selling prices were down 0.9%. This promotional strategy was explicit across the company's Gap and Old Navy brands. Tarlowe sees this promotional approach as an opportunity in the pressured retail sector, as he remains cautious regarding a handful of estimates and price targets among The Gap's peers. The Gap, Inc. (NYSE:GAP) is a speciality apparel retailer in America. The company offers apparel, personal care products, and accessories for women, men, and children. Its prominent apparel brands include Old Navy, Gap, Athleta, and Banana Republic. The company operates through stores, online, third-party sellers, and franchise stores. While we acknowledge the potential of GAP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GAP and that has 100x upside potential, check out our report about this cheapest AI stock. Read Next: and . Disclosure. None. Sign in to access your portfolio
Yahoo
22-05-2025
- Business
- Yahoo
Jefferies Raises PT on The Gap (GAP), Keeps Hold Rating
On May 21, Jefferies raised the price target on The Gap, Inc. (NYSE:GAP) from $26 to $29, keeping its Hold rating on the stock. Corey Tarlowe from Jefferies has lifted the price target on GAP ahead of its Q1 2025 earnings release on May 29. The analyst is optimistic about the company's sales and believes that the firm's updated pricing and discounts during the quarter suggest a more promotional environment. A customer shopping in a department store, browsing through racks of clothing. The Gap, Inc. projects its net sales to be flat to up slightly during Q1 FY2025 compared to net sales of $3.4 billion in Q1 FY2024. While the gross margin is expected to expand slightly from 41.2% in Q1 FY2024. Tarlowe highlighted that the Q1 data through April 29 shows that discounts across the company's apparel brands were up 1.3% year-over-year, while average selling prices were down 0.9%. This promotional strategy was explicit across the company's Gap and Old Navy brands. Tarlowe sees this promotional approach as an opportunity in the pressured retail sector, as he remains cautious regarding a handful of estimates and price targets among The Gap's peers. The Gap, Inc. (NYSE:GAP) is a speciality apparel retailer in America. The company offers apparel, personal care products, and accessories for women, men, and children. Its prominent apparel brands include Old Navy, Gap, Athleta, and Banana Republic. The company operates through stores, online, third-party sellers, and franchise stores. While we acknowledge the potential of GAP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GAP and that has 100x upside potential, check out our report about this cheapest AI stock. Read Next: and . Disclosure. None.
Boston Globe
21-05-2025
- Business
- Boston Globe
Target cuts sales forecast on shopper pullback, tariff hit
'I want to be clear that we're not satisfied with these results,' Cornell said during a call with reporters. 'We've got to drive traffic back into our stores and visits to our site.' Advertisement He said Target has to move with a greater sense of urgency, attributing the results to weakness in discretionary spending, declining consumer confidence, uncertainty over tariffs and shopper backlash against the company's decision to halt diversity initiatives. He listed strength in e-commerce as a bright spot. The Minneapolis-based company has struggled to return to steady growth as consumers spend less on clothes, home goods and other non-necessities following years of rising inflation. Demand for discretionary items has yet to rebound. While that trend has hit retailers broadly, Target has been more vulnerable than some of its peers. That's because apparel, home goods and non-consumable items make up about 65 percent of its sales, while competitors such as Walmart Inc. rely on groceries for a larger percentage of revenue. Target has also had trouble with inventory management in recent years amid fluctuations in demand. Advertisement 'We think it will be more difficult for Target in this environment given tariffs and Walmart's substantial market share gains,' said Jefferies analyst Corey Tarlowe. In a sign that pressure to improve performance is rising, Target announced a series of management reshuffles and said its Chief Strategy and Growth Officer Christina Hennington, a Target veteran of more than 20 years and once seen as a potential successor to Cornell, will leave the company. Chief Operating Officer Michael Fiddelke will lead a newly formed group called the 'multiyear acceleration office,' aimed at positioning Target to move faster on growth priorities. The company will also double down on offering trendy, affordable products and convenient shopping experiences, executives said on a call with analysts. Target shares fell 7 percent in New York trading at 9:30 a.m. Through Tuesday, the company's stock was down about 27 percent compared with a 1 percent increase in the S&P 500. The worse the economic turbulence gets, the more pressure it puts on Cornell — a CEO once seen as a retail wunderkind. Following stints at Walmart Inc. and PepsiCo Inc., Cornell joined as the top executive of Target over a decade ago and streamlined the retailer's operations. He led the company through the pandemic and beefed up digital operations, but Target hasn't been able to generate substantive growth since then. Target has trailed Walmart, which has been investing in low prices, sprucing up assortment and remodeling stores. It's also gained market share among wealthier shoppers that used to be Target's sweet spot. Advertisement Target executives acknowledged that they're not hitting the mark. Sales jumps during major holidays and limited-time design collaborations help fuel growth and bring people into stores, but the company isn't seeing that same kind of momentum on a more regular basis. 'We recognize that we've got to make sure each and every day, we deliver the right products, the right assortment, the right value that brings guests into our stores and our digital sites,' Cornell said. The big-box chain has also faced boycotts by some shoppers following a pullback from diversity initiatives earlier this year. While Target is one of many companies that have dialed back such programs following pressure from the Trump administration, the company has experienced a bigger backlash than others. That's due to the brand's efforts in past years to promote diversity as central to its corporate identity. This ranged from partnering with Black-owned suppliers to offering a wider range of apparel sizes. The company has excess inventory due to lower-than-expected demand, and plans to adjust it going into the second half of the year. Tariffs represent the latest obstacle. Higher levies on imported goods are expected to raise prices of goods in the near term, resulting in a decline in consumer sentiment and cautious shoppers. Executives signaled that challenges are expected to persist in the coming months. The company is adjusting prices in response to the volatile environment, executives said, without directly linking changes to tariffs — a departure from the company's more direct comments about the levies' effect in March. The retailer is moving to reduce its exposure to China. It's on track to source about 25 percent of its store brands from China by the end of next year, down from 60 percent in 2017. Target is also negotiating with suppliers on prices. Advertisement Home Depot Inc. on Tuesday also struck a more conservative tone about tariffs after Walmart last week said that price increases are coming. Those remarks drew the ire of Trump over the weekend. Despite general weakness, consumers are still spending when they find new, trendy products at good value, said Rick Gomez, Target's chief commercial officer. The company's recent collaboration with Kate Spade was its biggest sales success in years for designer partnerships, while holidays such as Valentine's Day and Easter outperformed non-holiday days. Target lost market share in 20 out of 35 categories during the last quarter, Gomez said. It gained or held market share in areas like essentials, produce, flowers and women's swimwear. Target will focus on growing share in more areas this year, executives said, as it looks to offer new items and key products at a good value. The company has sharpened its focus on deals and plans to offer more than 10,000 new items this summer, with some costing as little as $1.
CNBC
15-05-2025
- Business
- CNBC
Jefferies' Corey Tarlowe on how Walmart is navigating tariff uncertainty
Jefferies analyst Corey Tarlowe joins 'Closing Bell Overtime' to discuss Walmart as the discount retailer is set to report earnings on Thursday.
Fast Company
14-05-2025
- Business
- Fast Company
Walmart's earnings could offer clues about how retail is weathering the tariff storm
Results from Walmart, a bellwether for the U.S. retail industry, will offer proof on Thursday why the Arkansas behemoth is best placed to navigate the uncertainty from the Trump administration's tariffs. Walmart is among a handful of large companies that has not either pulled or slashed its forecast. The company last month reaffirmed its annual forecast, saying 'nothing in the current environment changes its strategy'. Since the announcement was made minutes before U.S. imposed a 145% tariff on China – Walmart's largest supplier – investors will watch for any adjustment to the outlook and whether it absorbs any tariff-related costs or passes them on to customers. The world's largest retailer has promised to keep prices low to keep its price advantage over competitors. its fiercest rival, is also 'maniacally focused' on lower prices and has encouraged sellers to move more inventory to the U.S. before tariffs take effect. 'Many consumers are prioritizing saving money and stretching their dollar a little bit further,' Jefferies analyst Corey Tarlowe said. 'They're prioritizing what they need over what they want. So they're trading into value-oriented retailers…that to me paints a very clear picture that's conducive to success for Walmart.' With the U.S. and China pausing trade escalations on Monday, retailers including Walmart have had to deal with a month of elevated tariffs. Many stopped shipments from China and reached into their inventories to stock shelves. Rival Target, unlike Walmart, expects annual sales to be flat and tariffs to weigh on its results. It reports on May 21. Walmart said in February it expects profit growth to slow this year even as sales rise. It forecast adjusted earnings per share for the fiscal year ending January 2026 in the range of $2.50 to $2.60, and sales growth of 3% to 4%. At that time, Trump had imposed 10% tariffs on goods from China and 25% on goods from Mexico and Canada. 'Walmart should be able to effectively manage the increase in tariffs, given its strong global sourcing operation, healthy vendor relationships, and defensive product mix,' Telsey Advisory Group analyst Joseph Feldman said. 'Sales should be pretty solid and it feels like investors feel confident that Walmart will execute and operate in this environment.' Its U.S. e-commerce business will be in focus as the company has said the division will achieve profitability for the first time in the first quarter. The business has seen double-digit growth for 11 straight quarters in the U.S. and clocked 16% growth globally in the fourth quarter. It accounts for just under a fifth of Walmart's annual revenue. The company's paid membership program, Walmart+, is of interest for investors who want to see if it is taking customers away from rivals Amazon and Costco. Walmart's stock has been on a tear over the past year, rising 60% to take its market value above $700 billion, and outperforming six of the so-called Magnificent Seven tech companies that led the market rally in 2023 and 2024. Only Tesla has performed better. For the first quarter, analysts polled by LSEG expect Walmart net sales to increase 2.7% to $165.88 billion and net income to fall 9% to $4.64 billion. '(Walmart's) more favorable positioning relative to the rest of retail will probably become even more evident as the year unfolds, when the operating environment could become much more challenging,' UBS analysts said in a research note. —Ananya Mariam Rajesh, Reuters
