Target, Macy’s feel the pinch as consumer spending softens

#macys #target #retail #consumerspending #yahoofinance

The pressure on the consumer is shifting to retailers, as earnings from industry giants Target (TGT) and Macy’s (M) point to ongoing weakness in the consumer. Target reported better-than-expected second quarter results, topping Wall Street expectations on profit and revenue. The retail powerhouse also saw a 3% increase in store traffic during the quarter. However, Target’s full-year guidance remains cautious, reflecting the ongoing consumer spending slowdown. In contrast, Macy’s reported net sales of $4.9 billion, falling short of the $5.06 billion estimated. Same-store sales also disappointed, falling 4% where Wall Street had only been expecting a 0.27% drop. Yahoo Finance executive editor Brian Sozzi breaks down the factors that drove Target’s results, despite the consumer still being "choosy." This includes the company’s efforts to lower prices and introduce more discount initiatives, which could position it for strength heading into the holiday season. Meanwhile, Yahoo Finance senior reporter Brooke DiPalma dives into Macy’s report, discussing what it revealed about the state of the consumer. She notes that discretionary consumer spending is still feeling squeezed, with even higher-end consumers feeling the pinch and the broader department store landscape continuing to struggle. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith

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