Target Corporation said on September 29 that it is cutting prices on nearly 2,000 home items, apparel and accessories as it seeks to attract cost-conscious shoppers ahead of the holiday season. The reductions build on cuts covering more than 10,000 products over the past year, with some women's, men's, infant and toddler apparel and family footwear priced 20% or more below last year's levels, and a refreshed bedding assortment averaging 15% lower than a year ago. The move follows three consecutive quarters of stronger-than-expected results; in August the company lifted its full-year outlook under CEO Michael Fiddelke, after reporting Q2 net sales of $26.5 billion, up 5.3% year-over-year, and raising its GAAP and adjusted EPS guidance to $9.90 to $10.90, including approximately $1.65 per share of tariff-refund benefits. Walmart is pursuing a similar strategy, having said it will lower prices on approximately 11,000 products after its slowest quarterly comparable sales growth in August. Target shares have gained more than 50% year-to-date as of October 1 and carry a forward P/E of 15.62, well below Walmart's 38.02, while the company pays a quarterly dividend of $1.16 per share for an annual yield of 2.95%.
Target CorporationTarget is cutting prices on nearly 2,000 items, a price reduction on its own products that pressures margins.
Walmart Inc.Walmart is mentioned only as pursuing a similar strategy of lowering prices on about 11,000 products.
