Target Sales Slide: Hold Rating Amid Strategy Concerns (NYSE:TGT)


New York during the COVID-19 emergency.

Massimo Giachetti

Investment Thesis

As I have written before in my Lululemon Athletica Inc. (LULU) article, consumer discretionary stocks are being negatively impacted by slower consumer spending. According to Target Corporation’s (NYSE:TGT) last earnings report

Target

Walmart

Kohl’s Corporation (KSS)

The TJX Companies, Inc. (TJX)

Amazon.com, Inc.(AMZN)

Corporate Strategy

Balance value & experience, strong private label brands, omnichannel focus

Everyday low prices, vast selection, focus on efficiency

Value oriented department store, focus on national brands & private labels

Treasure hunt shopping experience, brand-name discounts

Online retail giant, vast selection, convenience, fast delivery

Revenue Growth direction

Flat

Steady growth

Flat

Steady growth

Steady growth

EBITDA Margin

8.18%

6.05%

8.39%

12.68%

16.35%

Other important factors

Strong digital presence, focus on a loyalty program

Strong supply chain, emphasis on low prices

Strong private label brands, focus on promotions

Focus on curation and treasure hunt experience

Diversified revenue stream. Wide variety of fulfillment options.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *