On this edition of Stock Movers:
- Target (TGT) shares ended the day on the downside. This comes after the company named Michael Fiddelke as its next chief executive officer, betting that the insider will revive the storied retailer struggling with weak sales. The company said Wednesday the board unanimously elected Fiddelke, who currently serves as chief operating officer, to be CEO starting in February. He will also join Target’s board, while current CEO Brian Cornell, who has led the big-box retailer since 2014, will transition to focus on his role as executive chair.
- TJX (TJX) shares rose to a record high today after the off price retailer raised its full-year earnings per share outlook after better-than-expected results, a sign that shoppers wary of economic uncertainty are turning to discounters. The TJ Maxx and Marshalls parent now expects full-year earnings per share of $4.52 to $4.57, up from $4.34 to $4.43. The company said it assumed it will be able to offset the significant pressure it expects from tariffs throughout next year. Revenue of $14.4 billion in the three months ending Aug. 2 beat analysts’ expectations. Chief Executive Officer Ernie Herrman said in the statement that the current quarter is “off to a strong start.”
- Coty (COTY) shares fell after forecasting steep sales declines will continue as retailers clear out existing inventory and consumer demand remains tepid in the face of an uncertain economic outlook. Shares sank 12% in post-market trading. Coty dropped 30% this year through Wednesday’s close, compared with an 8.7% rise for the S&P 500 Index over that time. In the current quarter, like-for-like sales, which measures revenue from existing business units, will fall between 6% and 8%, the perfume and cosmetic seller said in a statement, more than consensus expectations for a 2.6% drop. The struggles come at the end of a five-year turnaround initiative aimed at reinvigorating growth and amid reports that the company is contemplating selling off its high-end brands to peer Interparfums Inc. The lower-end brands, which include Covergirl and Rimmel cosmetics alongside fragrances for Adidas and Nautica, could also be sold in a separate transaction, Women’s Wear Daily said in June.
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