Hot on the heels of updates from Walmart (WMT:NYSE) and Home Depot (HD:NYSE), hard-pressed Target Corporation (TGT:NYSE) is the next major retailer to give a read on the health of a US consumer struggling with the rapid rise in inflation and interest rates of the past few years.

The discounter’s second-quarter earnings are slated for 21 August, when Target will need to assure investors it is on track for a return to growth in the 12 months to January 2025, and deliver the previously-guided uplift in quarterly comparable sales, to avoid a negative share price reaction on the day.

The Minneapolis-based retailer’s greater exposure to general merchandise than Walmart has proved a headwind in recent quarters with cash-strapped US shoppers becoming pickier over their purchases. Back in May, Target’s shares fell after first quarter earnings missed Wall Street expectations, although well-regarded CEO Brian Cornell did flag a return to digital growth as well as a ‘meaningful improvement’ in discretionary trends, most notably in clothing, in Q1.

On the upcoming earnings call, investors will be eager for an update on Target’s investments in supply chain and AI, as well as its recently announced partnership with Shopify (SHOP:NYSE), which will see some of the Canadian e-commerce platform’s own merchants added to the Target Plus marketplace.

Shares in Target have underperformed the broader market over the past year and are down 5.3% year-to-date versus a near-30% rise for Walmart at the time of writing.

US UPDATES OVER THE NEXT 7 DAYS

QUARTERLY RESULTS

19 Aug: Estee Lauder, Fabrinet

20 Aug: Lowe’s, Medronic, Dick’s Sporting Goods, Alcon

21 Aug: Salesforce, TJX, Synopsys, Target, Autodesk, Zoom Video, Urban Outfitters

22 Aug: Intuit, Workday, Baidu, Dollar Tree, HP Inc, Abercrombie & Fitch, Gap

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