This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Booming High-End Retail, Slumping Low-End: StockTwits

Stocks in this article: TIF TGT JWN M KORS WMT

The results showed that the budget retailer is still struggling to regain its footing after last year's data breach, which exposed millions of customers credit card numbers to hackers -- ultimately resulting in the resignation of Target's CEO Gregg Steinhafel. Target has also suffered from a disappointing Canadian launch, which led to the firing of Canadian operations head Tony Fisher on Tuesday. And if luxury retail results are any indication, Target may also be feeling the pinch of higher-end consumers trading up.

$TGT yep moving to Canada was a bad move which will keep on giivng? sort of a money pit ? Old Turkey (@Partridge) May. 21 at 08:20 AM

Though Target missed, results ultimately weren't as bad as most had predicted. The firing of Steinhafel and Fisher had many expecting a terrible quarter that would be blamed on the leadership -- or lack thereof -- of the two men. The stock is down nearly 6% since Target fired Steinhafel. It opened 0.6% higher Wednesday.

my 1st take on Target, more to come: Target?s Canadian sales surge in first quarter but loss widens $TGT ? marina strauss (@MarinaStrauss) May. 21 at 09:29 AM

Target and Tiffany confirm the relative strength of the high-end trade. Retailers that topped EPS expectations last quarter include Nordstrom  (JWN) and Bloomingdale's owner Macy's  (M). Meanwhile, budget stores such as Walmart (WMT) and Target (TGT) have missed consensus EPS estimates.

As tough as rest of US retail is, high-end still spending away in Q1. From Estee to Tiffany & Nordy to Victoria's Secret $EL $TIF $JWN $LB ? Rahul Sharma (@retail_guru) May. 21 at 07:06 AM

Investors say the strength of high-end store results are leading them to bet on other luxury retail brands, namely Michael Kors  (KORS). The company reports earnings on May 28, before-the-bell.

with $TIF and $JWN beating on earnings, i am more and more convinced that $KORS will beat ? will hassell (@WillHassellws) May. 21 at 09:03 AM

But few watching the retail numbers would want to load up on cheaper brands.

>>Read More: Target's Big Miss: What Wall Street Thinks

>>Read More: Apple Can't Lose Unless It Beats Itself

>>Read More: How to Trade Earnings for Best Buy, Dollar Tree, NetApp and 4 Others

>>Read More: 10 Quirkiest Vacation Homes You Can Rent This Summer

At the time of publication the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs