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.
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 http://stks.co/e0a2r $TGT ? marina strauss (@MarinaStrauss) May. 21 at 09:29 AMTarget 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 - Get Report) 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 AMInvestors 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 AMBut 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.