Mon, Feb. 22, 10:52 AM
- Sterne Agee raises its price target on Target (TGT +0.6%) to $77 ahead of the company's earnings release scheduled for Wednesday. The PT boost follows on some cautious optimism from other retail watchers off indications that demand for Star Wars and Apple products may have boosted traffic above expectations for Target during the quarter.
- Two important pullouts from Target's report besides the headline numbers and guidance will be the read on same-store sales in the U.S. (+2% would be very solid) and the level of e-commerce growth (a double-digit gain would top Wal-Mart).
- Related: Investors Await Target's Results As Peers Crumble Around The Iconic Department Store Brand (Jan. 17 2016)
- Previously: Target investors a bit nervous after seeing Wal-Mart's U.S. results (Feb. 18 2016)
Fri, Feb. 19, 1:21 PM
- Wayfair (W +4.3%) gobbled up market share during Q4 by growing e-commerce sales by 150% Y/Y, according to a data read from Slice Intelligence. The research firm says Wayfair attracted online shoppers away from Amazon, Macy's, and Restoration Hardware.
- Target (TGT -1.1%) was another holiday season winner with estimated e-commerce growth of 52% off of strong demand for Star Wars products and Apple promotions. The company also benefited on the volume side by offering free shipping this year on all orders.
Thu, Feb. 18, 8:35 AM
- There's some nervous trading around Target (NYSE:TGT) after peer Wal-Mart disappointed with a sub-1% U.S. comp for Q4.
- Target reports Q4 earnings on February 24. Analysts expect Target to report revenue of $2.186B and EPS of $1.54.
- Previously: Wal-Mart lower after showing soft U.S. comp (Feb. 18 2016)
- Previously: Wal-Mart clobbered by Amazon in e-commerce battle (Feb. 18 2016)
- TGT -1.26% to $71.19.
Fri, Feb. 12, 10:54 AM
- Consumer spending in the U.S. showed some strength in January to defy some of the signals being sent by equity markets.
- "The markets may have decided that the U.S. is headed for recession, but obviously no one told U.S. consumers," said econimist Paul Ashworth.
- Though data shows consumers have pulled back on some big-ticket categories to save more, there's some pockets of retail that could surprise this year - especially if gas prices move closer to $1/gallon.
- Companies that consumers interface with daily or weekly are more likely to benefit than those in the luxury discretionary space where falling 401K or profit-sharing plan values weigh a bit heavy on demand (home improvement, jewelry, high-end auto, etc), note analysts.
- Potentially sitting in that sweet space: Ross Stores (NASDAQ:ROST), TJX Companies (NYSE:TJX), Ulta Salon (NASDAQ:ULTA), Columbia Sportswear (NASDAQ:COLM), Skechers (NYSE:SKX), Nike (NYSE:NKE), Foot Locker (NYSE:FL), Dollar General (NYSE:DG), Target (NYSE:TGT), Party City (NYSE:PRTY), Churchill Downs (NASDAQ:CHDN), Isle of Capri (NASDAQ:ISLE), Penn National Gaming (NASDAQ:PENN), Boyd Gaming (NYSE:BYD), Casey's General Stores (NASDAQ:CASY), McDonald's (NYSE:MCD), Cracker Barrel (NASDAQ:CBRL)... add your own in the comments.
Thu, Feb. 4, 11:23 AM
- The retail sector is struggling after Kohl's issues soft guidance and with several reports from store chains (Cato, Zumiez, Fred's) tipping weak January traffic.
- Department store decliners include J.C. Penney (JCP -3.1%), Macy's (M -2.7%), Nordstrom (JWN -5.6%), and Dillard's (DDS -1.3%). While mall names Gap (GPS -1.4%), American Eagle Outfitters (AEO -1.6%), Abercrombie & Fitch (ANF -2.2%), Children's Place (PLCE -3.1%), and Carter's (CRI -1.9%) are also weak compared to the broad market.
- Target (TGT -3%), Costco (COST -2.8%), and Wal-Mart (WMT -1%) are also lower. Earlier today. Costco reported a +1% comp in the U.S. for January.
- Discount-leaning Fred's (FRED -8.7%), Dollar Tree (DLTR -3.1%), Dollar General (DG -1.6%), Big Lots (BIG -3%), Five Below (FIVE -2.9%), TJX Companies (TJX -2.2%), and Ross Stores (ROST -1.2%) are also feeling a pinch.
Tue, Jan. 26, 1:18 PM
- Mall stocks are solidly ahead of broad market averages as investors key off today's strong read on consumer confidence. A decent report from Redbook on chain store sales is also in the mix.
- Gap (GPS +4.7%), American Eagle Outfitters (AEO +4.8%), Tilly's (TLYS +5.8%), Children's Place (PLCE +4.5%), Buckle (BKE +5.3%), and Urban Outfitters (URBN +3.7%) are all taking back ground lost earlier this year.
- The gains are slightly less for department store chains J.C. Penney (JCP +2.4%), Kohl's (KSS +2.6%), and Macy's (M +2.7%).
- Best Buy (BBY +3.5%) and Target (TGT +2.3%) are also trying to break out.
- Previously: Consumer confidence improves 1.8 points in January (Jan. 26)
- Previously: Weather plays a mixed role (Jan. 26)
Tue, Jan. 19, 2:45 PM
- A major push by IKEA to increase online sales could have a ripple effect across the furniture industry.
- Home24 CEO Domenico Cipolla thinks IKEA's reach will help it familiarize consumers with the process of buying furniture online. The development could help his firm and other Internet-based sellers.
- On the brick-and-mortar side, analysts warn as IKEA moves more items online some major chains will see pricing pressure.
- IKEA is also testing a smaller-store format which leans on selling online fulfillment.
- Related stocks: LZB, PIR, RH, TGT, ETH, WSM, HVT.
Thu, Jan. 14, 8:11 AM
- Target (NYSE:TGT) declares $0.56/share quarterly dividend, in line with previous.
- Forward yield 3.13%
- Payable March 10; for shareholders of record Feb. 17; ex-div Feb. 12.
Sat, Jan. 9, 10:47 AM
- The success of the retail sector during the holiday season came into focus after a number of chains issued their holiday sales reports last week and research firms weighed in with data-driven analysis.
- Lesson #1 - Early and late: 25% of all shoppers purchased a Christmas present before Halloween, while the Black Friday to Cyber Monday period disappointed. A late flurry of shopping was a boon for many large retail chains, as well as Amazon (NASDAQ:AMZN), FedEx (NYSE:FDX), and UPS (NYSE:UPS). Trading around anecdotal reports of Black Friday traffic now looks like an exercise in futility.
- Lesson #2 - Women over men: Sales of women's apparel were strong during the two-month period, up 10%, while demand for men's apparel tailed off significantly. A microcosm of the trend is the +8% comp reported by L Brands (NYSE:LB) - while The Men's Wearhouse (NYSE:MW) is in a -72% 3-month funk. The disastrous performance in the electronics category (BBY, CONN, HGG) reinforces the trend.
- Lesson #3 - The sweet spot of retail was in the middle: Luxury sellers (COH, KORS, RL, TIF) had a weak holiday season as F/X challenges and lackluster Asian tourism factored in, while discounters also were scrambling due to a high level of promotional activity. The $2-gas benefit seemed to help in the middle where Costco (NASDAQ:COST), Target (NYSE:TGT), Ross Stores (NASDAQ:ROST), TJX Companies (NYSE:TJX), and The Children's Place (NASDAQ:PLCE) set up shop.
- Lesson #4 - No slowdown in online : Holiday online sales rose 20% Y/Y. Brands such as Ulta Salon (NASDAQ:ULTA) and Victoria's Secret that sell easily through e-commerce channels are well-positioned to benefit from the trend, although for a large part of the apparel sector the e-commerce mix is a margin cruncher. Just ask Gap (NYSE:GPS), Urban Outfitters (NASDAQ:URBN), and American Eagle Outfitters (NYSE:AEO).
- Sources: Planalytics.com, Chain Store Age, company holiday sales reports
Fri, Jan. 8, 1:43 PM| Fri, Jan. 8, 1:43 PM
Thu, Jan. 7, 10:14 AM
- A large number of retail stocks are defying the global market sell-off to put in strong gains.
- The unexpected strength follows a few store chains reporting solid holiday sales growth, headlined by L Brands with a stellar 8% comp. The underlying story behind the good read may be that $2 gas prices are helping to feed consumer spending at U.S. store chains.
- Gasbuddy.com forecasts gas prices will stay low in the U.S. for all of 2016.
- Notable gainers include Wal-Mart (WMT +2%), Target (TGT +1%), Gap (GPS +2.3%), Fred's (FRED +1.2%), Express (EXPR +1.1%), American Eagle Outfitters (AEO +1.6%), Tilly's (TLYS +2.3%), Urban Outfitters (URBN +4%), TJX Companies (TJX +0.6%), Ross Stores (ROST +1.6%), Kohl's (KSS +2%), Stein Mart (SMRT +4.4%), Citi Trends (CTRN +1.7%), Buckle (BKE +4.8%).
- Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, FXD, FDIS, RHS, FSTA, RCD, PMR, BITE
Mon, Jan. 4, 9:16 AM
Dec. 28, 2015, 10:31 AM
- MasterCard reports holiday sales rose 7.9% during the holiday season, led by strong growth for big ticket items. The growth rate is much stronger than the 3.7% gain in holiday sales forecast by the National Retail Federation.
- Online sales were up 20% Y/Y during the period which implies some acceleration in December after some Black Friday and Cyber Monday reports disappointed.
- The strong read from MasterCard on top of the volume spike at FedEx adds some weight to the theory that the 2015 holiday shopping season was back-half loaded due in part to a higher reliance on online orders. Warm weather also played a factor by pushing back some apparel buying.
- Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Macy's (NYSE:M), and Best Buy (NYSE:BBY) are seen as potential beneficiaries of the late rush, while Amazon may have captured even more market share.
- Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, IYC, FXD, PEJ, FDIS, RHS, FSTA, SCC, UCC, RCD, PMR, PEZ, UGE, PSL, PSCC, PSCD, SZK, BITE
Dec. 18, 2015, 3:01 PM
- Target (TGT -1%) aims to launch a mobile wallet, according to Reuters.
- Sources say the launch could come as early as next year.
- Though competition for mobile wallet customers is expected to be intense with Alphabet, Apple, Samsung, and Wal-Mart all active in the space - Target has a close connection to its customer base through the successful REDcard progam.
Dec. 18, 2015, 11:23 AM
- Black Friday results may have slightly stronger than what was first indicated in largely anecdotal reports last month, observes NPD Group.
- The research firm says the percentage of shoppers hitting stores on the key shopping day increased slightly year-over-year to 43%. Thanksgiving traffic was also up, although the percentage of shoppers that went out both days actually fell.
- Best Buy (NYSE:BBY) and Wal-Mart (NYSE:WMT) were volume winners during different periods of Thanksgiving Day, while Macy's (NYSE:M) was the peak leader on Black Friday.
- Target (NYSE:TGT) and Amazon are seen by NPD as big holiday shopper winners when the broader period is reviewed. Target is hitting its stride largely due to solid assortment and inventory management, while the popularity of Amazon Prime has helped the e-commerce beast to gain market share.
- Discretionary retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, PEZ, PSCD, BITE.
Dec. 18, 2015, 7:45 AM
- The number of organic food offerings at traditional grocery stores stands 35% to 50% higher than a year ago, according to an estimate from Piper Jaffray.
- The development continues to pressure specialty grocery store chains such as Fairway Group (NASDAQ:FWM), Sprouts Farmers Market (NASDAQ:SFM), Whole Foods Market (NASDAQ:WFM), and Natural Grocers By Village Cottage (NYSE:NGVC) which expected to dominate the organic food sector.
- BB&T sees Fairway as in the toughest position of the bunch. Recent earnings reports indicate Kroger (NYSE:KR) and Target (NYSE:TGT) are stealing organic market share.
- "We’re definitely in a little bit of a shakeout right now, and I don’t expect that all of these specialty grocers are going to survive," warns PJ analysts Sean Naughton.
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
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