Connect with us

Hi, what are you looking for?


Jim Cramer’s take on Target’s Q3 earnings print

Target Corporation (NYSE: TGT) opened over 15% down this morning after reporting a disappointing third quarter and giving weak guidance for the future.

Jim Cramer reacts to the earnings report

A 2.7% annualised growth in comparable sales in fiscal Q3 was better than 2.2% expected.

But Target Corporation warns of a slowdown over the holiday quarter even though retail sales on Wednesday were reported “up” 1.3% for October (better than expected).

It’s calling for a low-single-digit percentage decline in its fourth-quarter same-store sales versus analysts at a 3.1% increase instead. Reacting to the earnings print, Jim Cramer said:

If the consumer has slowed, a company that’s a little bit more expensive than Walmart Inc – Target Corporation could get hurt.

Remember that the Fed is still indicating intent to further lift rates (read more), which improves the possibility of a recession and a slowdown in consumer spending. So, investors interested in buying Target stock on the weakness should consider that macro landscape as well.

On the earnings call, the big box retailer said organised retail crime has resulted in a $400 million hit to its gross profit this year. On CNBC’s “Squawk Box”, Cramer added:

October was a weak month and it’s interesting to see that it’s been a bad November too. At the same time, the amount of stealing at Target Corporation is a little disconcerting.

Target stock down on a sharp decline in profit

Net income was $712 million – down from $1.49 billion
Per-share earnings were cut nearly in half to $1.54  
EPS was unchanged even when adjusted for one-time items
Revenue went up 3.4% year-over-year to $26.52 billion
Consensus was $2.16 a share on $26.41 billion revenue

Despite the beat on revenue, Target Corporation took a 320 basis points hit to gross margin as cost of sales jumped 8.1%. Inventory was up 14.4% versus the same quarter last year but that was still a significant improvement from 36.1% in the prior quarter.

Following the retail news, Target stock is now down about 40% versus its year-to-date high.

The post Jim Cramer’s take on Target’s Q3 earnings print appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Solana (SOL/USD) is enormously underrated as a cryptocurrency project, even with its hiccups – including the latest exploit on one of the ecosystem apps....

    Editor's Pick

    The new eSIM infrastructure will help modernise the IoT connectivity market with fast, secure connections and reduced vendor lock-in. 1oT, a tech startup from...


    The latest Job Openings and Labor Turnover Survey from the Bureau of Labor Statistics shows the total number of job openings in the economy...


    U.S. District Court Judge Reed O’Connor recently ruled to uphold the rights of employers granted in the Religious Freedom Restoration Act, rather than uphold...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023