Musings From Peachtree Street

Q3 Target Earnings

The sad story of a once-great store…

Q3 Target earnings came out this week, and the stock plummeted. Not too much of a surprise to anyone who shops at Target. Guest traffic was up 2.3%, digital sales were up 10.8%, and yet third quarter sales inched up just 0.3% – suggesting to me that in-store sales were down significantly. Is there a problem brewing with the consumer? No, the consumer seems to be holding steady since Walmart U.S. sales were up 5.3% during the same quarter. Even Gap reported better-than-expected results. So what’s wrong with Target??