The Retail Model Is Changing. Here's What Investors Need to Know About What's Driving Growth at Walmart and Target.
Growth isn't just coming from store purchases.
Overview
Walmart (NASDAQ: WMT) and Target (NYSE: TGT) both released earnings last week, and while they both reported strong growth, they got very different market reactions. Walmart stock fell 10% after earnings in one day, while Target stock gained 10%.
The market was unimpressed by Walmart's 5.9% sales growth in the 2026 fiscal second quarter (ended July 31), as U.S. comparable sales (comps) growth decelerated to 2.6% due to lower-priced pharmaceuticals. Target, on the other hand, had some of its best performance in years, with a 5.3% increase in sales in fiscal Q2 2026 (ended Aug. 1), driven by a 3.8% increase in comps. Target is in recovery mode, and investors are excited about its turnaround.
Image source: Walmart.
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Originally published at www.fool.com.