TL;DR: Target’s sales growth returned to negative territory as ticket and traffic both declined; inventory is elevated placing margin pressure on the business, and management reduced its sales and profit outlook for the year. Growth catalysts remain unclear to us, although the creation of an Enterprise Acceleration Office is a step in the right direction so long as it takes bold action.
7 minute read
Target reported worse-than-expected results this morning, including negative sales growth, negative comps, decelerating growth trends across stores and digital channels, and worsening profitability.
Consumer brands responsible for growing their Target business have been dealt a tough hand over the last two years, and they face a challenging 2025 and likely 2026.
Keep reading for our take on the results, including:
- April-2025 quarter data and analysis
- Management’s new (worse) outlook
- Brand action items
- Key charts
- Strategic considerations for Target’s newly created “Acceleration Office”
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