Target Shares Fall to 52-Week Low While Walmart Hits All-Time High in Diverging Earnings Reports

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.