Economy

bucolic_frolic

(47,572 posts) Wed Nov 20, 2024, 08:32 AM Nov 20

Target sounds the alarm bell on holiday shopping

https://www.cnn.com/2024/11/20/investing/target-stock-earnings-holiday/index.html

The company forecast Wednesday that sales during the final quarter of the year will be flat, and Target lowered its profit forecast. Target also reported a sluggish sales increase of just 0.3% during its latest quarter.

Target is a bellwether for consumers’ spending habits and the retail sector as a whole, and the bad news dragged rivals’ stocks lower, too, Wednesday. The holiday shopping season is pivotal for retailers. While Target can survive a weak holiday season, many smaller companies depend on strong sales during the holidays.

Target is struggling because its core middle-class customer base has been strained by higher prices and pulled back on discretionary goods like home decor, electronics and nonessential clothing in favor of groceries and everyday essentials.

But Target has also slumped because of its merchandise mix and higher prices compared to rivals like Walmart. The chain stocks more non-essential merchandise compared to competitors such as Walmart (WMT) and Costco (COST). More than half of Target’s merchandise is discretionary, making it more susceptible than its rivals to swings in consumer sentiment.

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Target sounds the alarm bell on holiday shopping (Original Post) bucolic_frolic Nov 20 OP

fear of the tariffs coming r the only thing that's gonna save them. mopinko Nov 20 #1

Fear of trump policies will affect all kerouac2 Nov 20 #2

'24 Q3 over '23 Q3: Walmart: +5.3%, TJX (TJ Maxx & Marshalls): +3% nmmi Nov 20 #3

mopinko

(71,952 posts)

1. fear of the tariffs coming r the only thing that's gonna save them.

Reply to bucolic_frolic (Original post)

Wed Nov 20, 2024, 08:43 AM

Nov 20

a whole lot of ppl r gonna clamp down on spending.

kerouac2

(744 posts)

2. Fear of trump policies will affect all

Reply to bucolic_frolic (Original post)

Wed Nov 20, 2024, 09:07 AM

Nov 20

I bet many trumpers are going to buckle up too because deep down they know he is going to cause major economic problems.

People are going to cut spending, especially Dems who are smart enough to pay attention.

But of course, everything will still be blamed on Biden and dems.

nmmi

(203 posts)

3. '24 Q3 over '23 Q3: Walmart: +5.3%, TJX (TJ Maxx & Marshalls): +3%

Reply to bucolic_frolic (Original post)

Wed Nov 20, 2024, 10:31 AM

Nov 20

Walmart’s US sales at stores open for at least a year grew 5.3% last quarter compared with the year prior, the company said Tuesday, and its profit grew 8.2% last quarter. Walmart raised its financial outlook, a signal it expects a strong holiday shopping season.

... TJX, the parent of TJ Maxx and Marshalls, also posted strong results during its latest quarter. TJX’s sales at stores open at least one year increased 3% last quarter and it raised its guidance.

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