From Nasdaq: 2025-05-25 06:05:00

Target’s latest results were disappointing, with same-store sales dropping and revenue sinking nearly 3% year over year. The company also warned about the impact of tariffs and economic uncertainty. Earnings per share plunged 36%, leading to a slash in full-year guidance. Despite a stock rise post-earnings, Target still faces challenges compared to Walmart and Costco.

The company saw declines in traffic and average ticket, with in-store comparable sales falling by 5.7%. E-commerce sales rose by 4.7%, but overall, Target’s revenue and same-store sales took a hit. Gross margin slipped due to higher costs. Sales guidance now predicts a low-single-digit decline.

Target is struggling to compete with rivals like Walmart and Costco, with a stock trading down about 30% on the year. The company faces challenges from tariffs, weaker consumer spending, and years of underperformance. While the stock may benefit from an economic boom, caution is advised due to its ongoing struggles and valuation gap.

The Motley Fool Stock Advisor team did not include Target in their list of 10 best stocks to buy now. Target’s performance has lagged behind peers, and the company faces numerous challenges. Investors may want to consider other options with better growth potential.



Read more at Nasdaq: Target’s Market Share Is Slipping — Time to Buy the Dip or Stay Away?