Target (TGT) has gotten pounded this month after ousting its CEO, pushing out the head of its Canadian business and hiring a new chief information officer. So it would have made sense for Target’s shares to get hit again today after the retailer said it had missed analyst forecasts and lowered its guidance.
Getty Images Nope. Target’s shares have gained 0.7% to $56.99, while competitors were mix. Wal-Mart (WMT) has dropped 0.2% to $75.52, while Macy’s (M) has ticked up 0.1% to $56.59, and Kohl’s (KSS) has advanced 0.7% to $52.70.
Deutsche Bank’s Paul Trussell and Matt Siler believe that Target’s future is less about its ability to sell lots of stuff than its ability to transform itself into, well, a better retailer. They explain:
…we believe the Target story going forward will be less about current retail trends and more about the ability of this big box retailer to successfully undergo a major transformation. In speaking with management, the company highlighted a focus on generating innovative ideas to improve both U.S. and Canadian operations, and speeding up the decision making process within the merchandise organization…
Sure, that might mean sacrificing its ability to stay on Target, but at this point, does anyone really care?
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