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.
President Joe Biden and Chinese President Xi Jinping have discussed Taiwan, artificial intelligence and security issues in a call meant to demonstrate a return to regular leader-to-leader dialogue between the two powers.
April is Earth month, and while the green revolution might feel far away, the founder of climate VC Siam Capital says it’s on it’s way, and, even better: it won't cost you more.
From snow in April to heatwaves in December, it’s hard to plan a trip in a climate change world. Startup Sensible Weather thinks weather-based travel reimbursements are the solution.
Between corporate debt and the widening gap between ‘the haves and the have nots,’ there are reasons to be cautious about the economy, even with interest rate cuts on their way.
If the A.I. hype hasn’t given you enough of a reason to be excited (and a little terrified), the CEO of Zapata AI says the next frontier is designing bridges or creating pharmaceutical drugs.
Stocks are near record highs, inflation is moderating, and analyst Deiya Pernas is 'optimistic' the U.S. is heading for a soft landing without a recession – which is good news for your wallet.
Google co-founders Larry Page and Sergey Brin loved pulling pranks, so much so they began rolling outlandish ideas every April Fools' Day not long after starting their company more than a quarter century ago.
