Target shares skyrocketed on Wednesday after the big-box retailer reported earnings that blew past expectations ahead of the critical holiday shopping season.
Target ($TGT) beat on the top and bottom lines and showed eye-popping same-store sales growth of 4.5 percent. Comp sales are the most watched metric for retailers.
The company has been in the midst of a transformation of sorts, spending heavily on e-commerce, delivery logistics, and store renovations. And it's clearly paying off. Target CEO Brian Cornell said in a conference call that the quarterly earnings show "further proof of the durability" of that investment decision.
Coming on the heels of rival Walmart's earnings beat ー which was the result of a surging grocery business ー Target's numbers give more support to the theory that the U.S. consumer is carrying the tariff-battered American economy on its back. That theory will be given the ultimate test now, with the holiday shopping season about to officially begin. Target has said it will spend an additional $50 million on wages this quarter to ensure it has enough staff to deal with the holiday crush.
It will also be the first big test of Walmart's next-day delivery service. Target is offering free standard shipping on hundreds of thousands of items in a bid to lure customers away from Amazon. Cornell told CNBC that the company is improving on its shipping economics by sending more items directly from stores rather than fulfillment centers, which results in average savings of 40 percent per order.
Target wasn't the only big box to see its shares pop on earnings. Lowe's jumped after the home-improvement retailer beat expectations and raised guidance even though revenue fell short.
Chris Beauchamp, Chief Market Analyst at IG International, joins J.D. Durkin to give analysis on the recent trade truce between the U.S. and China. Watch!
Shan Aggarwal, VP of Corporate and Business Development at Coinbase, discusses the company's acquisitio of Deribit as it heads into the S&P 500. Watch!
American businesses that rely on Chinese goods are reacting with muted relief after the U.S. and China agreed to pause their exorbitant tariffs on each other’s products for 90 days. Many companies delayed or canceled orders after President Donald Trump last month put a 145% tariff on items made in China. Importers still face relatively high tariffs, however, as well as uncertainty over what will happen in the coming weeks and months. The temporary truce was announced as retailers and their suppliers are looking to finalize their plans and orders for the holiday shopping season. They’re concerned a mad scramble to get goods onto ships will lead to bottlenecks and increased shipping costs.
Shopping expert Trae Bodge discusses how talks between the U.S. and China is good news for now, but uncertainty remains for back-to-school and the holidays.
Jake Traylor, White House reporter at Politico, joins Cheddar to discuss how Trump is aiming to lower drug prices and how it differs from Biden's approach.
DJ X, alongside Molly Holder, Senior Director of Product Personalization, takes us inside Spotify's A.I. DJ and how it's the best new way to listen to music.
