Target Corporation (NYSE:TGT) certainly tickled the ears of investors today, announcing it would be boosting an existing stock-buyback program of $10 billion by buying back an additional $5 billion worth of Target stock. Not bad for a company with a market cap of only $39.5 billion.
And yet, beyond the headlines of the Target buybacks, shareholders know the retailer has lingering problems.
To its credit, TGT has introduced some solutions as well. It developed a new small-store format, unveiled a wider array of groceries and delivered some heart-felt pleas to all its employees. It’s all falling flat so far with shoppers though, and by extension falling flat with investors and analysts.
Target Stock Fizzling Out
As a refresher, last quarter, Target managed to boost its year-over-year bottom line per share of TGT stock, though by most other (more important) measures it hit a wall. Same-store sales fell by 1.1%, and total company revenues fell 8% year over year.
There was more than one reason for the headwind.
Arguably the biggest one is the boycott of Target by a few million consumers who are less than pleased with the retailer’s April decision to allow transgender people to use the stores’ restrooms of their choice.At least 1.4 million have signed a petition to stop shopping at Target, and countless more have stopped patronizing the company’s stores without signing the petition.
Read more at Investor Place