Target Stock Hits 52-Week High

Target's stock reaches a new high with impressive holiday quarter sales and a return to robust gross margins, signaling a strong consumer market.

Target Stock Hits 52-Week High
Photo by Shabaz Usmani / Unsplash

Target’s recent earnings report has everyone talking—and for good reason. Sales have shot up, hitting the highest point since early 2022. Supply chain expert Jason Miller gives an in-depth analysis on LinkedIn.

What's Behind the Numbers?

  • After adjusting for seasonal shopping patterns and inflation, Target's sales spiked this past quarter (November 2023 - January 2024).
  • This leap is particularly eye-catching because the end of the year is already their busiest season.

Margin Magic

Target's gross margin rate bounced back big time. Basically, for every $100 Target earned, they kept more than at any time since 2021.

Inventory Insight

While not shown in the charts, the time it takes Target to sell its stock is back to the pre-pandemic days of 2018/2019. Fewer goods sit around, meaning the retailer "has resolved its inventory glut."

he Big Picture

  • The fear that American shoppers were tightening their belts? These numbers from Target seem to tell a different story.
  • They suggest folks were out there buying, and not just anything—they were picking up items that gave Target a better profit.

"While there are some encouraging signs in the economy, there are also stubborn pressures impacting families and retailers...And yet their affinity for style and newness, plus early signs of disinflation, contributed to a sequential uptick in discretionary-category performance over the last two quarters, something we aim to build on and accelerate." -  Target's Chief Growth Officer, Christina Hennington

Why Should We Care?

  • These strong numbers aren't just good news for Target. They're a breath of fresh air for everyone who moves their products around—trucks, ships, etc.
  • It means the wheels keep turning, and the goods keep moving.

Once again, Target goes beyond hitting the target and setting new records. Their end-of-year report card shows they've got the formula down: sell more, keep more, and manage stock better. It's a good sign not only for them but for the broader economy.

Source: Jason Miller/LinkedIn

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