Target’s very rough patch over the past two years is highlighted by the incredible security breach in November of 2013 that exposed millions of customer credit cards to hackers and brought an unprecedented amount of negative publicity. With an improving economy, and after posting very decent holiday numbers last quarter, the growth path for the retail giant has accelerated again.
Target has been increasing focus on its Internet presence, and online sales currently make up 3% of total sales. While that number looks low in comparison to some of the others, the huge sales volume of the store tempers the overall numbers.
The company has moved out of its Canadian locations which put about 17,600 employees out of work. While difficult, it closes a very unprofitable and ill-fated chapter in the company’s history, and it helps the company to move forward and concentrate on the profitable U.S. business.
Earlier in April Target tripped over itself when demand for Lilly Pulitzer clothing knocked Target.com offline early on the morning of April 19. The Wall Street Journal quoted a Target spokesperson who said, “When the traffic got heavier, we made the website inaccessible.” The problem has at least two effects. One is that Target lost sales. The other is that it lost customers who will not come back.
A few analysts weighed in on Target ahead of its earnings report:
- Zacks upgraded Target to a Buy rating from Hold and set its price target at $88
- Piper Jaffray reiterated an Overweight rating with a $91 price target
- MKM Partners has a Neutral rating with an $80 price target
Target shares were relatively flat at $78.32 Tuesday afternoon. The consensus price target is $79.82. The 52-week trading range is $55.25 to $83.98.
ALSO READ: 10 Most Popular Stores in America
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