TGT underperforms peers as revenue growth fails to offset rising costs, dragging earnings per share down 24% last quarter.
Target’s stock has declined 40% over the past five years, underperforming the S&P 500’s 75% gain and Walmart’s 128% surge. Costco also outperformed with a 109% increase in the same period.
Revenue rose 7% to $22.4 billion in the latest quarter, but earnings per share fell 24% to $1.71 due to higher selling, general, and administrative expenses. Walmart and Costco reported revenue of $576 billion and $199 billion last year, respectively, compared to Target’s $104 billion.
New CEO Michael Fiddelke faces pressure to reverse years of underperformance, though shares have rebounded 58% this year. Investors remain cautious as the company struggles to match peers’ growth.