While Target (NYSE: TGT) has been a bellwether of retail sector health in recent years, it is not today. The company’s lackluster results are due to its operational quality and lack of relevance in an environment where consumers are budget-conscious. Results from other retailers, including Walmart (NYSE: WMT), The TJX Companies (NYSE: TJX), and Williams-Sonoma (NYSE: WSM), show them growing, sustaining margin strength or widening margin and providing a healthy outlook for these trends to continue. The take on consumer health ex-Target is that strong labor trends point to a healthy spending season, with growth likely above the consensus estimates.
