WMT vs TGT

AGA7d

Now both ER are out - appears TGT has a better report but was sold off in the early trading. Similar happened to WMT a few days ago. Both recovered some ground after ER.

From the reports, TGT has a slight SSS increase while WMT has a small SSS down. So TGT is better? Not so fast, compared to pre-crisis, WMT may have a little increase compared to TGT's single digit down. If you count the international sales, WMT clearly leads here.

Overall, both are general merchandise stores which usually do better in recession than specialty ones. The credit crisis had been tough on TGT since the TGT clients used to rely more on credit which leads the high single digit SSS decline in late 2008 holiday. Now the credit issue is stabilizing, so TGT should be doing fine next. But I don't see a big pick-up there since TGT is not perceived as a value retailer.

jiangnanhao

thanks

ranchgirl