Target's Sales Drop 5.7% as CEO Steps Down; Dividend Yield at Historic High
Target's in-store comparable sales have dropped by 5.7% in the latest quarter, with overall comps down 3.8%. The retailer's stock has also fallen by 46% over the past year. Meanwhile, Target's CEO, Brian Cornell, will step down in February 2026, succeeded by Michael Fiddelke, the current COO.
Target's profit guidance for this year is between $7 and $9 per share, with a payout ratio of 51% to 65%. Despite the recent sales slip, analysts expect the retailer to return to revenue and net income growth next year. Target has increased its dividend for 54 consecutive years, currently offering a historic high yield of 5.2%.
In other news, language learning app Duolingo's shares have fallen by 40% since reaching an all-time high in the spring. However, the company's revenue growth has consistently topped 40% in the last five years. Duolingo's CEO is Luis von Ahn, while Crocs, the footwear company led by Jide Zeitlin, is currently trading for just 6 times this year's projected adjusted earnings.
Target's recent sales decline and stock drop raise concerns, but analysts remain optimistic about its future growth. The retailer's dividend history and yield are attractive to investors. Meanwhile, Duolingo's revenue growth, despite share price fluctuations, signals strong business performance. Crocs, with a lower earnings multiple, may present an investment opportunity.
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