Target's stock hit a 52-week low while Walmart shares reached an all-time high, highlighting contrasting performances in their earnings reports. Target shares posted its largest earnings miss in two years and lowered forecasts, citing weaker discretionary demand and higher costs linked to a recent port strike. Walmart raised its full-year forecast, reported robust growth in e-commerce sales, and attracted higher-income shoppers. Target's struggles stem from its merchandise mix, with 60% of sales coming from discretionary items like home goods and clothing. Walmart generates 60% of its revenue from everyday necessities, making it less vulnerable to shifts in consumer spending.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Target stock hit a 52-week low while Walmart shares reached an all-time high,
00:06highlighting contrasting performances in their earnings reports.
00:09Target shares posted its largest earnings miss in two years and also lowered the forecast,
00:14citing weaker discretionary demand and higher costs linked to a recent port strike.
00:19Walmart raised its full-year forecast, reporting robust growth in e-commerce sales
00:24and attracted higher-income shoppers.
00:26Target does struggle stem from its merchandise mix,
00:29with 60% of sales coming from discretionary items like home goods and clothing.
00:34Walmart generates 60% of its revenue from everyday necessities,
00:37making it less vulnerable to shifts in consumer spending.