Prove investors wrong in 2026, Target (TGT). Let’s see what you got.
Today there is a lot of attention and status surrounding the goal.
Coinciding with its fourth-quarter earnings release, the retailer is holding its annual investor day on its Minneapolis patio.
I think the company — now led by new CEO Michael Fedlak and a new leadership team following longtime CEO Brian Cornell — will improve its store investment plans and why 2025 results will be a low-water mark.
Execs will probably use today’s earnings and call for positive sales in February to help Wall Street and investors with their bullishness.
The fact that Target holds its annual investor event in Minneapolis is no small surprise. It’s a defining moment for the discount retailer, which has done poorly for more than two years. Adversely in terms of low-price marketing to cash-strapped consumers, who have flocked to Walmart (WMT).
Weakness in online execution.
And reinventing stores while pushing shoppers to stock up on groceries once a week.
It has also failed to maintain its pulse as the American family culturally.
All that said, I’m not going to take the charm bait for the show at Target today.
The goal must remain in the penalty box as a fixed deposit. This means that until the company starts posting positive quarters, you don’t just buy the stock and keep riding the best of Walmart or Costco ( COST ) on a pullback.
To illustrate my point, here’s what I didn’t like about the Goal quarter:
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Fourth straight quarter of customer transactions (aka traffic).
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Comparable sales fell 2.5%. Walmart US saw a comp gain of 4.6%.
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Full-year sales guidance for growth is more optimistic given the company’s challenges and fresh consumer uncertainty caused by the war in Iran.
“I like the bar to be low on branding,” retail expert Jeff McKick said of opening bids.
I get Mike’s point. His father was the CEO of Target years ago—in fact, he helped build the company from the ground floor. But I want to see the goal earn your trust, and until then, numbers will be numbers.
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