Target Corporation CEO/CFO Meeting QuickTakes

Research evidence excerpt

Target Corporation CEO/CFO Meeting QuickTakes

J P M O R G A N North America Equity Research

11 June 2026

Target Corporation Neutral

TGT, TGT US

CEO/CFO Meeting QuickTakes Price (10 Jun 26):$127.98

Retailing – Broadlines & Hardlines /

Leisure

Christopher Horvers, CFA AC

(1-212) 622-1316

christopher.horvers@jpmorgan.com

Christian Carlino, CFA

(1-212) 622-9145

Target hosted a sell-side meeting this morning at the NYSE, including CEO christian.carlino@jpmorgan.com

Michael Fiddelke and EVP & CFO Jim Lee. Overall, mgmt remains confident Jolie Wasserman

that the turnaround strategy is working, with traffic and results in categories (1-212) 622-1961

where they’ve invested (e.g., apparel and food/beverage) showing jolie.wasserman@jpmchase.com

improvement pre and post changes. (1) The company believes 1Q saw puts and J.P. Morgan Securities LLC

takes on the macro front relative to its strong performance (suggesting less of a

stimulus lift to sales, albeit against an easy lap) and is happy to chase inventory in

discretionary categories that have done well (suggesting clean inventories). The

consumer is re-engaging in categories they invested in and "she is coming back"

for other seasonal moments, which is so important to the TGT brand promise (with

limited time only partnerships helping to drive loyalty vs. being designed to "plug

a hole" in the sales given comparisons. Notably, mgmt reiterated that the consumer

remains resilient in light of broader pressures. (2) On the margin front, growth

is critical to margin expansion "with profit pools like advertising improving the

structural dynamics" and the opportunity to expand margin for the “foreseeable

future.” Roundel is a differentiated asset in retail given its 20%-plus credit card

penetration and breadth of assortment.