Target’s Captain Abandons Ship As the “Red Bullseye” Gets Torpedoed by Walmart

“You’re not that guy pal, you’re not that guy.”

That’s pretty much what Walmart’s response was to Target after the red bullseye just sh*t the bed with yet another earnings report. (Cue DJ Khaled: “Another one”). And sure, this quarter wasn’t quite as catastrophic as Q1, but Target still looks like a brand that peaked in 2021 and has been trying to relive the glory days ever since (like Uncle Rico talking about how he could’ve taken state if coach would’ve just put him in). Meanwhile, Walmart is thriving while literally copying every single detail from Target’s playbook.

Now remember, when it comes to earnings, the vibe almost always matters more than the numbers. And if you’re just looking at the paper, Target technically beat. EPS came in at $2.05 versus the $2.03 Wall Street wanted, and revenue landed at $25.21 billion instead of $24.93 billion. Cool, right? Except that’s where the good news taps out. 

Comparable sales dropped 1.9% year over year, customer traffic slipped 1.3%, and the shoppers who did bother showing up spent 0.6% less. Net income slid to $935 million from $1.19 billion a year ago, and margins dipped from 30% to 29%. Not exactly the comeback story anyone was hoping for to restore confidence. And that, my friends, is why investors are dumping the stock into the ocean… it’s down 10% so far today.

(Source: Wall Street Journal)

Yeah, digital sales were up 4.3% and Roundel (Target’s ad biz) grew double digits. But Wall Street wanted a Vegas fireworks show. Instead, Target showed up with a sparkler from Dollar Tree. No one’s clapping for that.

Leadership saying “peace out” isn’t helping either. CEO Brian Cornell is stepping down in February after an 11-year run, and Target’s replacing him with Michael Fiddelke, a 20-year company vet who started as an intern. Fiddelke swears he knows “what Target can be at its best,” and laid out priorities like making Target stylish again, improving the customer experience, and finally using technology effectively. That all sounds good, but it’s also the same vague “we’ll get our groove back” speech Target’s been giving since the pandemic ended. Sorry Mike, but I think we’re all gonna need a little proof you can turn this around instead of “just trust me bro” energy.

Unfortunately, Target keeps inventing new ways to shoot itself in the foot. The Ulta Beauty mini-shops (once hyped as the big “this’ll save us” play) are getting axed in 2026. Tariffs are landing harder too, since half the shelves are imports compared to Walmart’s one-third. 

And who can forget the DEI backpedal earlier this year, a speedrun in alienating both progressives and longtime loyalists in one move. Foot traffic has been absolute dogsh*t, sliding almost every week since January, with Placer.ai logging another 3.1% drop in Q2. At this point, Spirit Halloween is drawing steadier crowds… and they only exist inside abandoned Sears buildings for two months a year.

It’s wild how fast the competition can flip the script. Three years ago my wife wouldn’t even think twice… Target was the automatic choice every single time. Now? Walmart straight-up stole the playbook and leveled it up with nicer stores, better clothes, stronger partnerships… the whole package. At this rate, Target’s only endgame move will be pawning itself off to Chip and Joanna Gaines and rebranding as Magnolia Mart… where every aisle smells like shiplap and overpriced candles.

At the time of publishing this article, Stocks.News doesn’t hold positions in companies mentioned in the article.