"No large retailer in America has posted worse results over the past five years than Target Corp. ( NYSE: TGT). And the board has shown another example of the poor judgment that hurt it. Michael Fiddelke, Target's chief operating officer, was promoted to chief executive, after working for his boss Brian Cornell. As strange as it seems, Cornell became executive board chair, after a five-year period during which the stock dropped 44%, while the S&P 500 gained 79%."
"Just as Fiddelke was promoted, Oliver Chen, an analyst at the investment bank TD Cowen, told clients, "Target has a lot of needs. It starts with product." In the most recent quarter, revenue fell 1.5% to $25.3 billion. Earnings collapsed 18.8% to $1.52 per share."
"Morningstar described why Target's problems were years in the making and are probably permanent: "We do not assign Target an economic moat rating, as we believe the company lacks a structural cost advantage, pricing power, or moat-worthy intangible assets to deliver excess ROICs over the long run." According to Morningstar, Target's revenue and net income peaked in 2022. Wall Street does not think well of Target. According to Yahoo, analysts do not believe this year will be any better than last year. That means it is likely its stock price will not improve."
Target experienced the weakest performance among large American retailers over the past five years, with its stock falling 44% while the S&P 500 rose 79% and Walmart advanced 148%. The board promoted COO Michael Fiddelke to CEO and moved Brian Cornell to executive board chair despite the negative track record. Recent quarterly revenue declined 1.5% to $25.3 billion and earnings fell 18.8% to $1.52 per share. Analysts cite product and operational needs, Morningstar assigns no economic moat, and Wall Street expects no improvement this year.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]