Thu, Jun. 2, 7:45 AM
- May monthly performance was: +1.13%
- 52-week performance vs. the S&P 500 is: -3%
- No dividends were paid in May
- Top 10 Holdings as of 3/31/2016: JPMorgan Chase & Co (JPM): 2.92%, US Treasury Note 1.125%, Citigroup Inc (C): 2.72%, US Treasury Note 0.5%, General Electric Co (GE): 2.16%, Bank of America Corporation (BAC): 1.79%, Morgan Stanley (MS): 1.36%, Target Corp (TGT): 1.36%, US Treasury Note 1.625%, Carnival Corp (CCL): 1.29%
Fri, May 20, 10:02 AM
- Target (TGT +0.7%) is testing a new concept at 25 stores in Los Angeles.
- The so-called LA25 stores incorporate many of the most promising design, service, and product enhancements found at other pilot programs across the country in what could be a look at the next-gen Target.
- What's notable about LA25 is that the focus is on customer experience over cut-throat pricing competition with Wal-Mart and Amazon.
- Target lost the tale of the tape this week with shares -8.7% vs. WMT +7.3%.
Thu, May 19, 11:09 AM
- The short-term view on Target (TGT -1.3%) isn't particularly positive after earnings disappointed yesterday. In another bump on the road, data tracking firm RS Metrics says it observed a "noticeable fall" in traffic at Target stores during the last week in April when a bathroom boycott of the chain was instituted by groups objecting to the company's policy on transgender restroom usage. RS Metrics says traffic to Wal-Mart stores was higher for the same period.
- The slide in Target looks like an opportunity to a trio of SA contributors who aren't fretting over the Q1 results and transgender debate.
- Now read Target: Time To Take Aim Again from Josh Arnold, Target Falls Like A Rock, The Kind Of Rock Investors Should Consider from ColoradoWealthManagementFund, or Target, Wal-Mart Moves Are Overwrought from Dana Blankenhorn.
Wed, May 18, 10:08 AM
- Retail stocks are lower than broad market averages after Target (TGT -9.3%) sets a gloomy tone on U.S. consumer spending. There was a sense of bewilderment from Target in its release and earnings call commentary over the slowdown in sales post-Easter.
- Wal-Mart is down an even 3% to reach a multi-month low ahead of tomorrow's earnings report.
- Shares of Best Buy (NYSE:BBY) are 3.2% lower after the soft read from Target tilts sentiment. The electronics chain reports earnings on May 24 with analysts expecting revenue of $8.291B and EPS of $0.35 to be disclosed.
- Other chain store stocks reeling after the Target release are Conn's (CONN -0.1%), hhgregg (HGG -2.4%), Sears Holdings (SHLD -3.1%), GameStop (GME -1.6%), Bon-Ton Stores (BONT -2.3%), Dollar Tree (DLTR -2.1%), Big Lots (BIG -2.4%), Dollar General (DG -1.5%), Citi Trends (CTRN -7.4%), and PriceSmart (PSMT -2.9%).
- Previously: Investors edgy over retail stocks after Target disappoints (May 18)
- Previously: Target stung by low traffic trend (May 18)
Wed, May 18, 9:15 AM
Wed, May 18, 8:36 AM
- Target (NYSE:TGT) reports comparable-store sales increased 1.2% in Q1. The comp gain was split evenly between stores and e-commerce.
- Key sales stats: Number of transactions +0.3%. Average transaction amount increased 0.9%. Units per transaction fell 2.0%. Selling price per unit +2.9% Y/Y.
- Gross margin rate +50 bps to 30.9%.
- EBITDA margin rate was 8.2%.
- Digital sales rose 23% vs. +34% in Q4.
- SG&A expenses rate -50 bps to 19.4%.
- RedCard penetration +190 bps to 23.4%.
- Strong categories during the quarter were style, baby, kids, and wellness.
- Guidance: Target sees Q2 EPS of $1.00-$1.20 vs. $1.36 consensus.
- TGT -7.2% premarket to $68. Shares were already down about 6% in the week in front of the earnings release.
- Previously: Target beats by $0.09, misses on revenue (May 18)
Wed, May 18, 8:04 AM
Tue, May 17, 5:30 PM
Tue, May 17, 11:06 AM
- Target (TGT -0.2%) names Mark Tritton to the role of chief merchandising officer. Tritton was hired away from Nordstrom where he was executive VP of Nordstromg Product Group. There's more details on Tritton on a Q&A posted on Target's corporate blog.
- The company also created the new position of chief digital officer and promoted Jason Goldberger to manage Target's digital business in the role. Goldberger has contributed to the significant gains with the retailer's online and mobile businesses.
- Both appointments become effective on June 5.
Sat, May 14, 11:01 AM
- The retail sector stays in focus next week with Target (NYSE:TGT), Wal-Mart (NYSE:WMT), TJX Companies (NYSE:TJX), and Ross Stores (NASDAQ:ROST) all due to report on Q1 earnings to follow on a week of dismal reports and guidance from the department store sector (Nordstrom, L Brands, Macy's, Kohl's). Home improvement chains Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) are also due to spill numbers.
- The story from the Commerce Department's April read of retail sales (+3.0% Y/Y, +1.3% M/M) is one of a consumer spending on housing, entertainment, and personal care/fitness over apparel and general merchandise. The 10% Y/Y gain in the nonstore retailer category also tipped that the Amazon (NASDAQ:AMZN) Effect is magnifying.
- Amplify ETFs CEO Christian Magoon tells Seeking Alpha that the traditional retail model appears to be broken. Amplify's Online Retail ETF (NASDAQ:IBUY) is a bet on companies such as Netflix (NASDAQ:NFLX), GrubHub (NYSE:GRUB), Blue Nile (NASDAQ:NILE), and Shopify (NYSE:SHOP) that are reeling in millennial dollars.
- Magoon on retail: "Traditional retailers face the headwinds of higher cost structures including the very real threat of increasing wages in the form of the $15 minimum wage campaign. Less flexible with inventory management, they also are more vulnerable to issues like weather and changing consumer preferences."
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE.
- Apparel stocks: KATE, ANN, LULU, PVH, VNCE, CRI, UA, HBI, VFC, COLM, GIL, SQBG, JCP, KSS, DDS, M, JWN, ARO, AEO, ANF, WTSL, TLYS, CACH, ZUMZ, PSUN, EXPR, BKE, GIII, SQBG, HBI, VRA, ICON, SHOO, PERY, DXLG, BONT, GES, URBN, RL,GIL, NKE, OXM, HBI, VNCE, PERY, ICON, FL.
Fri, May 13, 9:59 AM
- A strong report on retail sales isn't working magic with shares of some of the larger U.S. chain stores.
- Wal-Mart (WMT -2.4%), Target (TGT -2.1%), Macy's (M -1.8%), Best Buy (BBY -1.3%), Walgreen Boots Alliance (WBA -0.4%), TJX Companies (TJX -1.4%), and Costco (COST -0.6%) are some of the names taking their cues from the steady roll of disappointing Q1 earnings reports.
- An intriguing pullout from the retail sales breakdown for April is also a potential factor. Non-store retailers (think Amazon (NASDAQ:AMZN)) increased sales by over 10% Y/Y during the month to easily top all other categories.
- Previously: Retail sales: Consumers spending, just not where they used to (May 13)
Wed, May 11, 10:54 AM
- Retail stocks are getting hammered this week up and down the sector on deep concerns over consumer spending at chain stores.
- Over the last few sessions Gap has lost 18%, Urban Outfitters is down 10%, and L Brands is off 12%. Discounters and high-end names alike are lower.
- In today's action, retail heavyweights such as Wal-Mart (WMT -4.3%), Target (TGT -4.1%), Macy's (-12%), Staples (-17%), and Best Buy (-3.6%) are taking their lumps.
- The retail sell-off isn't encapsulating one of the largest retailers in the world as Amazon (AMZN +1%) cruises to yet another all-time with concerns over foot traffic not in the mix.
- An interesting play on Amazon is the spanking-new Global X Millennials Thematic ETF (NASDAQ:MILN) which has the Seattle e-commerce company as its number one holding. There are only 48 people following the ETF on Seeking Alpha, but contributor Aaron Faulkner is already in with a breakdown.
Wed, May 4, 2:14 PM
- Target (TGT -0.5%) is getting serious about fixing supply problems, according to what COO John Mulligan laid out in an interview with Reuters.
- The company will enforce deadlines for warehouse deliveries by instituting penalties of up to $10K for late arrivals.
- A detailed set of new rules are being rolled out to suppliers over the next few months.
- The introduction of perishables a few years ago raised the complexity level of Target's supply chain management.
Wed, May 4, 2:56 AM
- Target (NYSE:TGT) is cracking down on suppliers as part of a multi-billion dollar overhaul to speed up its supply chain and better compete with rivals.
- The retailer plans to tighten deadlines for deliveries to its warehouses, hike fines for late shipments, and could institute penalties of up to $10K for inaccuracies in product information.
- The moves, effective May 30, are the first major steps Target has taken to fix supply problems that emerged after it expanded offerings, including fresh food, several years ago.
Sat, Apr. 30, 11:08 AM
- Retail stocks slumped yesterday after a weak read on consumer spending. Notable companies with drops of over 2% included Target (NYSE:TGT), Costco (NASDAQ:COST), Urban Outfitters (NASDAQ:URBN), and Macy's (NYSE:M). Wal-Mart (NYSE:WMT) was down 3% to cut into what's been a sizable gain this year.
- The damage was inflicted after the personal consumption expenditures price index (ex-food/energy) gained only 0.1% in March to decelerate from February's level.
- SA contributor George Putnam hears all the noise about soft store traffic, but still makes the case that companies with good brands, relatively strong balance sheets, and decent dividends are attractive investments.
- A value screen of retail stocks indicates that many chain store names may be oversold due to the intense focus by investors on limp comparable-store sales growth (Y/Y) and F/X pressure - two trends seen by some analysts as reversing this year.
- Tailored Brands (NYSE:TLRD), Gap (NYSE:GPS), Buckle (NYSE:BKE), Steinmart (NASDAQ:SMRT), American Eagle Outfitters (NYSE:AEO), Macy's (M), GameStop (NYSE:GME), and Best Buy (NYSE:BBY) all made the cut of having a forward P/E of less than 12, a dividend yield of over 2%, and a balance sheet ratio above the sector average.
- Related ETFs: XLY, XRT, VCR, RTH, RETL, FXD, IYC, FDIS, SCC, RCD, UCC, PMR
Mon, Apr. 25, 8:18 AM
- A monthly consumer survey conducted by Cowen Research found that Amazon (NASDAQ:AMZN) cut deeper into Wal-Mart (NYSE:WMT) and Target's (NYSE:TGT) market share in the grocery/consumables category.
- The e-commerce giant showed 18% year-over-year growth, while sales at both Wal-Mart and Target fell back from a year ago.
- The onslaught of Amazon into groceries has pushed retail chains toward innovation. Wal-Mart is expanding its new free curbside grocery pickup service this year, while Target is experimenting with a radical new program to charge for produce by freshness not weight.
- No read Wal-Mart's Online Grocery Pickup Is A Double-Edged Sword
Target Corp. engages in owning and operating of general merchandise stores. It also operates SuperTarget stores with a line of food and general merchandise items and offers an assortment of general merchandise, including many items found in the company's stores and a complementary assortment,... More
Industry: Discount, Variety Stores
Country: United States