Is Target's CEO Announcement Overshadowing Its Earnings Beat?
Target reported better-than-expected Q2 earnings of $2.05 per share on revenue of $25.21 billion, but pre-market action tells a different story. Shares are trading sharply lower around $94.22, as investors digest a 1.9% drop in comparable sales and another quarter of declining traffic. The company also announced that Michael Fiddelke will replace Brian Cornell as CEO in February.
Despite digital and advertising growth, weak in-store trends and the upcoming loss of the Ulta Beauty partnership are adding pressure. On the chart, Target is hovering just above its 50-day moving average ($102.00) but remains well below its 200-day ($115.26). With this pre-market move, the stock risks a breakdown below recent support near $95.
Traders appear to be favoring Lowe's clearer earnings story and forward-looking strategy. A strong move above $260 puts prior highs in play, especially if the Pro business continues to gain share. Target, on the other hand, needs more than cost cuts and leadership change to reverse declining shopper engagement.
As the market opens, watch for volume confirmation on Lowe's breakout and whether Target can hold the $94-$95 zone. These early moves could define retail sentiment heading into next week's macro data and further earnings.