News Analysis
Target sales have been volatile recently as the iconic retailer tries to regain its former glory.
On Wednesday morning, the Minneapolis-based retail chain reported a 0.3 percent rise in sales for the third quarter of 2024 from the previous year, driven mainly by a rise in digital sales.
The anemic rise in third-quarter sales follows a 2 percent rise in the second quarter, which followed a 3 percent decline in the first quarter.
Equity investors dislike erratic sales, which leads to unpredictable profit margins and free cash flow. These factors raise the risk of owning a stock. Thus, they sold Target’s shares, which closed down 21.41 percent. Target’s stock has been up 10.78 percent for the past five years compared to 88 percent for the benchmark S&P 500 Index….