Target has faced declining sales and store visits in recent years. Analysts are anticipating mixed results for the company's upcoming earnings report, suggesting short-term improvements may not address long-term challenges. Target has reported falling comparable sales in five of the past eight quarters. Foot traffic decreased by over 3% in the second quarter compared to last year. Despite this, some analysts, like Jefferies' Corey Tarlowe, argue that Target remains a solid business due to its strong categories like groceries, though execution may vary by location.
"While we think near-term results have improved very modestly, Target's longer-term competitive positioning remains challenged," Truist Securities retail analyst Scot Ciccarelli said in a note last week.
"I am definitely out of consensus on this one," Jefferies retail analyst Corey Tarlowe told Business Insider. "I think that this is still a very good business, contrary to popular opinion."
Tarlowe pointed to Target's large sales volume in categories like groceries and beauty, and said that it provides a solid foundation for the rest of the business.
Business Insider saw this mixed performance in visits to three stores across the US earlier this year.
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