TGT‘s Merch Strategy Is Helping Traffic, In Our View; Slightly Raising 2Q Ests

研报英文原文证据摘录

TGT‘s Merch Strategy Is Helping Traffic, In Our View; Slightly Raising 2Q Ests

USA | Discount Retailers

Target Corp EquityJulyResearch15, 2026

ESTIMATE CHANGETGT's Merch Strategy Is Helping Traffic, In Our

RATING BUYView; Slightly Raising 2Q Ests

PRICE $134.77^

We believe TGT's merchandising strategy is increasingly becoming a

meaningful traffic driver. TGT has accelerated newness across Wellness, PRICE TARGET | % TO PT $161.00 | +19%

Beauty, Home, Food & Beverage, and exclusive partnerships. Our collab analysis 52W HIGH-LOW $142.82 - $83.44

suggests activity is running well ahead of prior years, with additional launches FLOAT (%) | ADV MM (USD) 99.4% | 634.30

likely into 3Q. Combined with encouraging Placer trends, this supports raising MARKET CAP $61.4B

our 2Q comp estimate modestly from 1.5% to 1.6% and EPS to $2.18. TICKER TGT ^Prior trading day's closing price unless otherwise

noted.

TGT's Merchandising Reset Appears To Be Working... Since the beginning of the year, TGT has

grown its wellness section by 30%, introduced 3,000 Beauty products and 60 new brands, reset 75%

FY (Jan) CHANGE TO JEFe JEF vs CONS

of Home decorative accessories, accelerated Food & Beverage newness, and highlighted a BTS

2026 2027 2026 2027

assortment that is more than 50% new. In our view, this represents one of the broadest assortment

refreshes TGT has undertaken in years. REV NM NM NM NM

EPS NM NA NM -2%

... Which Has Helped Traffic... We believe that collabs, newness, Wellness expansion, Beauty

refreshes, Home resets, BTS launches, and F&B innovation collectively indicate a broader 2026 ($) Q1 Q2 Q3 Q4 FY

merchandising strategy that appears to be driving traffic. TGT is trying to convert differentiated EPS -- -- -- -- 8.42