Target to the Rescue: Better Than Expected Guidance Helps Retail Dead Cat Bounce

Do the shareholders of M and KSS really think there’s a correlation between TGT and the rest of retail? You’ve got to be kidding me. Both TGT and WMT have their own separate class of shopper — totally separate from shopping mall cretins.

Nevertheless, retail is the big standout today — thanks to the TGT guidance.

The co announced that as a result of improved traffic and sales trends through the first two months of the quarter, Target is now expecting to report a modest increase in its second quarter comparable sales (vs. guidance for low single digit decline). In addition, the Company now expects to report second quarter GAAP and Adjusted EPS above the high end of its previous guidance range of $0.95 to $1.15 (vs $1.06 Capital IQ Consensus Estimate). Both GAAP and Adjusted EPS are expected to reflect a 5 to 9 cent benefit driven by the net tax effect of the Company’s global sourcing operations. In addition, GAAP EPS is expected to reflect 2 to 3 cents of pressure related to the unfavorable resolution of tax matters.

“Target’s recent progress reinforces our confidence and commitment to our strategy as we build an even better Target for tomorrow. Following better-than-expected results in the first quarter, we’ve seen additional, broad-based improvement in traffic and category sales trends in the second quarter, despite continued challenges in the competitive environment” said Brian Cornell, chairman and CEO of Target. “Our team is energized and focused on enhancing and modernizing the Target shopping experience, and our guests are responding. The launch of Cloud Island in May was a success, and our team will be rolling out four more exclusive brands across Home and Apparel in the next few months, in support of our plan to launch 12 new brands by the end of 2018. We are also pleased with initial results of the Twin Cities rollout of Target Restock, providing next-day delivery of a shopping-cart-sized shipment from an assortment of more than 10,000 essential items.”

I don’t like the idea of chasing GPS because TGT said business was good. I’ll be ignoring this dead cat bounce and instead train my eyes on THAT FAG PUB to see what’s popping there.