Telsey Advisory Group: Target Refocusing On Core Business, Props To The CEO
Target Corporation (NYSE: TGT) reported better than expected second-quarter earnings and also raised its full-year EPS guidance to $4.60–4.75 from $4.50–4.65. Joe Feldman, Telsey Advisory Group, was on CNBC after the earnings declaration to weigh in on the results.
CEO Has Done A Terrific Job
"Terrific sales results, earnings came in very strong," Feldman began. "Obviously Brian Cornell, the new CEO – he has been there about a year – has really been doing a terrific job and it's certainly being reflected in the numbers.
Omnichannel Is Important
Feldman was asked, considering that Target's digital sales grew 30 percent and it only accounts for 0.6 percent of overall same-store sales, if omnichannel retailing is as important as it's perceived to be. He replied, "I think the omnichannel is really important for retail. I mean, you really need to have this full-integrated brick and mortar with omnichannel, with the digital and have whatever the customer wants. That's how you need to be able to offer the goods."
Refocusing On Core Business
On whether these results are a sign that Target is going back to basics, Feldman said, "Yeah, I think they are refocusing on the core business and what they do best. They had some fashion to some discounted product and, I think, they lost their way. They have transitioned the head merchant, they are in the process of searching for a new head merchant, and there's [sic.] definitely been some changes at the top. I think, you have to give credit to Brian Cornell for some of the impact."
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