August 21, 2024 at 02:54PM
Target raised its full-year profit forecast and reported its first rise in quarterly comp sales in a year, leading to a nearly 15% jump in shares.
The moves underscore what Walmart said last week — that the consumer is fine.
Shares hit a four-month high as the company said discounts lured shoppers and boosted its profit forecast range to $9.00-$9.70 from $8.60-$9.60 per share.
Comp sales rose 2% in the quarter ending in August and the company said it saw improving trends across discretionary categories, particularly in apparel.
One thing I would caution there is the Ozempic effect. Consumers may be buying more clothes as they lose weight.
The company sees full-year comp sales flat to +2% but more likely in the lower half.
Overall though, the company certainly isn’t seeing a recessionary consumer.
Similarly, shares of TJX are up nearly 6% after raising its profit forecast and beating on revenue. The company said the recent quarter was off to a “strong start”.
This article was written by Adam Button at www.forexlive.com.
