Caution on Target amid Trimmed Forecast and Growth Struggles

2 months ago

Tom Keane

"ticker TGT uh it's down as much as 3%. So basically they trimmed their profit forecast for the year. It's dealing with markdown soft demand key merchandise areas. It's C COO who's actually going to become the CEO in February. He said that they're not even satisfied with the current results but he said they're moving in the right direction and the company's been struggling to return to growth. It had this big boom during the pandemic. a lot of challenges, right? They had the tougher consumer economy, cooling job market, but if you remember, it was also hit by those boycots when it kind of pulled back on its diversity initiative. So, that's kind of hurting the company. They plan though to increase capital spending to 5 billion next year. They're using AI. They're partnering with Open AI to let shoppers use, you know, chat GBT on its platform. So, they're starting to do things."

The commentary highlights Target (TGT) trading down about 3% after trimming its profit forecast amid challenges such as soft consumer demand, leadership transition, and lingering post-pandemic issues. However, plans to boost capital spending and adopt AI initiatives appear to be efforts to reverse the current struggles.

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