Target Stock Is Rallying. It’s Been a Tough Year for the Retailer.

It’s unclear exactly what’s moving the dial Tuesday, though there could be a few catalysts. The company just wrapped its fall deals promotion, “Circle Week,” which ran from Oct. 1 to Oct. 7. Target has yet to release sales data on the event that came ahead of
Amazon.com
‘s (AMZN) “Prime Big Deal Days,” which run Tuesday and Wednesday.

Big numbers from the event could be just the ticket for the retailer, whose stock has fallen 26% this year, despite the jump Tuesday. The stock has taken a hit from one thing after another.

Last month, the company announced it was closing nine stores across four major metropolitan areas in response to an increase in theft and crime. “We cannot continue operating these stores because theft and organized retail crime are threatening the safety of our team and guests, and contributing to unsustainable business performance,” the company said Sept. 26.

Target also been dealing with a decline in same-store sales growth. The drop in the most recent quarter, reported on Aug. 16, was exacerbated by nationwide backlash over the company’s collection of LGBTQ+ merchandise, which it launched in May for June’s Pride Month.

To bounce back, Evercore ISI analyst Greg Melich recommended Target focus on merchandising. “In retail, that is still Job One,” he told Barron’s last month. “So buy stuff that people want, and sell it at a great price, and you’ll get traffic.”

The holiday season is up next, and a report suggested it might not be so jolly.
Mastercard
predicted retail sales will grow by 3.7% this holiday season, which runs from Nov. 1 to Dec. 24, down from 7.6% in 2022, Barron’s has reported.

Should those numbers ring true, Target stock may stay in the red this year.

Write to Emily Dattilo at [email protected]