Retailer Target Corporation (NYSE:TGT) could show a recovery in store visits during the second quarter when the company reports quarterly financial results on Wednesday before market open.
Here are the earnings estimates, what analysts are saying ahead of the results and key items to watch.
See what TGT is doing now.
Earnings Estimates
Analysts expect Target to report second-quarter revenue of $24.93 billion, down from $25.45 billion in last year's second quarter, according to data from Benzinga Pro.
The company missed analyst estimates in the first quarter, but has beaten estimates in six of the past 10 quarters overall.
Analysts expect Target to report earnings per share of $2.05, down from $2.57 in last year's second quarter. The company missed analyst estimates in the last quarter, but has beaten estimates in seven of the past 10 quarters overall.
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What Analysts are Saying
Several analysts have lowered their price targets on Target stock ahead of the earnings report.
Bank of America Securities analyst Robert Ohmes downgraded the stock from Neutral to Underperform and lowered the price target from $105 to $93.
Ohmes sees Target facing pressure on sales and margins and the potential for slowing digital growth. The analyst also said tariffs and pricing pressure could impact the stock.
Increased competition from the likes of Walmart (NYSE:WMT) and Amazon.com Inc (NASDAQ:AMZN) is also listed as a major concern for the analyst.
Ohmes said Target is lagging behind Walmart in comparable sales growth since 2019.
On the tariff and competition side, Ohmes said Target gets a higher percentage of its cost of goods sold from imports (50%) than Walmart (33%), which could mean Target needs to raise prices to offset the impact.
Here are other analyst ratings on Target and their price targets:
- Telsey: Maintained market Perform rating with $110 price target
- Truist: Maintained Hold rating, raised price target from $90 to $107
- Evercore ISI Group: Maintained In-Line rating, raised price target from $104 to $108
Key Items to Watch
Target's quarterly results will feature the months of May, June and July, including the company's Circle Week, which took place July 6 through July 12. The results could show strength in early back-to-school shopping and a high percentage of shoppers looking for sales during the key shopping period.
A Placer.ai report shows that Target's second-quarter visits were down year-over-year, but recovered some from the first quarter.
Target's visits were down 4.1% in the first quarter year-over-year, based on the report. In the second quarter, visits were down 3.1% year-over-year.
This included declines of 1.7% in May, 4.1% in June and 3.9% in July. Compare that to the months included in the first fiscal quarter with February down 9.1%, March down 6.7% and April down 3.5%.
Target's report also comes after the company announced it is not renewing a partnership with Ulta Beauty (NASDAQ:ULTA), which was a “store within a store” at certain Target locations since 2021.
Investors and analysts will likely want to hear more about what will happen when the Ulta partnership concludes in August 2026, such as whether the space will be replaced by another retailer or not.
Target's first quarter saw revenue and earnings miss Street estimates. The retailer remained excited for the future and highlighted strong digital growth, same-day delivery and a designer collaboration with Kate Spade.
The company lowered full-year earnings per share guidance after the first-quarter results. Investors and analysts would love to see these figures remain the same or be revised up again after the second quarter. Another cut to guidance could significantly hurt shares.
With Amazon and Walmart increasing their product selections for grocery and everyday items, Target will need to show growth in digital once again and a recovery in the stores to get investors excited.
TGT Price Action: Target stock is up 0.46% to $105.44 on Tuesday versus a 52-week trading range of $87.35 to $167.40. Target stock is down 21.98% year-to-date in 2025.
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