Jim Cramer Says Target Stock Should Be Higher
The retailer reported that in the current quarter, comparable sales have grown more than 7% quarter to date, with digital growth of more than 100% leading the charge. Target added digital comparable sales have increased by more than 275% in April.
“Our strategy was built to be durable and sustainable in any environment and its strength is driving our business in the face of marked shifts in shopping behaviors caused by COVID-19,” CEO Brian Cornell said in a press release.
Speaking with CNBC’s Squawk Box, Cornell said Target is seeing “Cyber Monday-like” digital purchases every day.
Most sales fell in the Essentials and Food & Beverage categories, while Apparel & Accessories saw a steep decline, down more than 40% in April.
Target noted that it’s not all sparkles and magic for the retailer as most sales fall in low-margin categories. It noted that the surge in lower-priced products and the shift to digital channels will cause the company to lower its first quarter operating margin by more than 5%.
Target also announced the extension of enhanced team member benefits and wages. The $2 wage increase announced in March for frontline team members will be extended through May 30.
“We have deep gratitude for the remarkable effort our team has put into supporting guests across the country. We remain committed to prioritizing our efforts to provide for their well-being so they can take care of themselves and their families during this unprecedented time,” Cornell said.
As of the opening bell, Target was down around 4% to $102.90.
Should investors put a target on the stock?
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