Target stock tumbled Wednesday after the retailer missed Q1 earnings views and guided lower. Meanwhile, TJX briefly broke out to a new record high after its report Wednesday morning. Fellow retailer BJ's Wholesale Club was little-changed early Thursday after its results. Ross Stores is on deck for this afternoon.
Target reported a 1% decline in earnings to $2.03 per share while revenue slid 3.1% to $24.53 billion.
FactSet analysts expected earnings to tick up 1 cent year over year to $2.06 per share. Revenue was predicted to ease to $24.52 billion.
Comparable sales declined 3.7% in Q1, which was in line with Target's estimates from its during its fourth-quarter beat.
The retailer sees Q2 adjusted earnings of $1.95-$2.35 per share vs. $1.80 per share last year, with comps flat to up 2%. But Wall Street predicted Target earnings of $2.20 per share.
The discount giant sees full-year adjusted earnings of $8.60 to $9.60 per share. But the midpoint of $9.10 is well below FactSet views of a 6.2% increase to $9.49 per share.
Target on Monday announced that it is slashing prices for around 5,000 everyday items ranging from milk, snacks and fresh produce to diapers, paper towels and pet food. Some 1,500 reductions have already been made, with more coming over the summer. Target said it routinely adjusts prices to stay competitive.
"We know consumers are feeling pressured to make the most of their budget, and Target is here to help them save more," Rick Gomez, executive vice president and chief food, essentials and beauty officer, said in the earnings release.
Target Stock
Target stock dived 8% Wednesday to notch four consecutive days of declines.
TGT stock on Tuesday undercut the low of an eight-week flat base with a 181.86 buy point. Wednesday's drop means it's no longer a flat base but a general consolidation.
Target eased slightly Thursday. The stock is now just up a fraction in 2024.
TJX Earnings
TJX reported a 22% earnings increase to 93 cents per share, which beat FactSet views of 88 cents per share and marked seven consecutive quarters of growth. Net sales climbed for the sixth quarter in a row and matched forecasts with a 6% increase to $12.48 billion.
TJX announced its Q1 2025 consolidated comparable sales rose 3%, driven by a 4% increase at U.S. HomeGoods stores and TJX locations in Canada.
The company guided comparable sales to grow between 2% and 3% for both the second quarter and 2025 fiscal year. TJX expects Q2 earnings between 88 cents and 90 cents per share, which was below analyst forecasts of 94 cents. The full-year earnings range of $4.03 to $4.09 per share was also shy of expectations of a 6.5% increase to $4.11 per share.
TJX stock pared gains to 3.5% Wednesday after jumping 6.5% in early trade. Shares briefly broke out to record highs, but closed just below a 102.04 buy point for a 13-week, double-bottom base. The stock ticked lower Thursday morning.
TJX stock rose 7.8% so far this year.
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Other Retail Earnings
Elsewhere, membership warehouse chain BJ's Wholesale reported results early Thursday, followed by off-price apparel retailer Ross Stores after the market closes.
BJ's reported flat Q1 earnings at 85 cents per share adjusted. Revenue rose 4.1% to $4.92 billion. The results edged out FactSet expectations of 83 cents per share on $4.86 billion in revenue.
BJ stock ticked a fraction lower early Thursday. BJ's is trading in a buy zone for a major consolidation going back nearly a year. Shares broke out above the 78.88 buy point in early March.
Wall Street predicts Ross earnings will increase 23.9% to $1.35 per share, slowing after three quarters of accelerating growth. Sales are seen rising 7.4% to $4.83 billion.
Ross Stores is trading just above the 200-day line, sliding since early March.
Costco Wholesale is on tap next week with its earnings due May 30. COST stock is trading in range of a 787.08 cup-base buy point.
Retail results have managed to beat soft expectations so far this quarter. Walmart scored a breakaway gap last week after beating estimates with a 22% earnings increase. Walmart noted that it continues to draw newer and more-frequent shoppers amid price inflation, while also attracting higher-income earners. The Dow Jones behemoth also said it expects full-year earnings and revenue to be at the top-end or slightly above its prior guidance.
Lowe's on Tuesday posted a 17% drop in Q1 earnings but still managed to top analyst forecasts. Rival Home Depot last week reported better-than-expected earnings, although the company's EPS declined 5%. Both Lowe's and Home Depot maintained their full-year outlooks. Elsewhere, Macy's on Tuesday topped earnings forecasts and raised its outlook, despite a nearly 52% decline in EPS. The legacy department store said it is in the "early innings" of turning around its performance.
However, Home Depot and Lowe's stock have fallen on results while Macy's rose slightly, though it's still below its 50-day line.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
