Investors were treated to quite the pair trade on Wednesday when shares of big box retailer Target Corp (NYSE:TGT) sunk while shares of home furnishing retailer Williams-Sonoma, Inc. (NYSE:WSM) rocketed off earnings. The two stocks were the biggest movers of the day, according to Benzinga Pro.
Price Action: Target's stock closed the day at $121.72, down 21.41%. According to market strategist Ryan Detrick, Wednesday was the Minneapolis, Minnesota-based company's third-worst day in history in the market.
Meanwhile, Williams-Sonoma's price action was certainly something to write home about. The San Fransisco, California-based company's shares closed the Wednesday trading session at $175.04, up 27.54%. This was the company's second-best day ever in the market.
Target Earnings: Target reported earnings-per-share of $1.85 in 2024's third quarter, under Wall Street's projection of $2.30. Revenue numbers also fell under expectations. Net income fell 12.1% year-over-year while cost of sales and administrative expenses increases outpaced revenue growth.
Management cited cost pressures and continued supply chain disruptions for its weak quarterly performance. The company has previously blamed store theft as a driver of financial underperformance.
Wells Fargo and Citigroup issued a downgrade for Target stock on Wednesday, according to Benzinga analyst ratings.
Williams-Sonoma Earnings: Williams-Sonoma's report painted a rosier picture.
The company reported earnings-per-share of $1.96, beating estimates of $1.78. The home furnishing and cooking retailer also gained market share and raised guidance.
Laura Alber, president and CEO, highlighted the company's margins as a catalyst for its earnings beat.
"Our operating results reflect the operational improvements that we have been focused on all year, and demonstrate the strength of our margin profile in a difficult environment," Alber said in a press release.
The Retail Industry: Target sells Williams-Sonoma cookbooks on its online e-commerce platform.
The two earnings reports paint mixed signals for a retail industry at a crossroads. While some retailers have continued to struggle amid tough macroeconomic conditions and rapid change in the industry at large, others have flourished.
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