Diamonds and Dogs
5/22/13Target Corp. (TGT)
Target is taking bullets today, down 4.02% at $68.40. The general merchandise store saw its shares drop after missing on first quarter earnings. Target reported a 29 percent drop in first-quarter profits, citing cooler spring weather and consumer financial pressures (such as higher payroll tax) as sources for the miss. Management said it earned $498 million, $0.77 per share, for the three months ended May 4. That compares with $697 million, or $1.04 per share, a year earlier. Wall Street analysts were expecting an EPS of $0.95. Target is still trading in the middle of its 52-week range of $55.94-$71.91.
Saks Incorporated (SKS)
Saks Incorporated is dressing up today, up 13.39% at $15.50. The clothing retailer saw its shares pop higher after news of a possible buyout. The New York Post reported after yesterday's close that Saks has hired Goldman Sachs "to explore strategic alternatives, including a possible sale of the company." The paper named private-equity firms KKR and Leonard Green & Partners as possible buyers. Aside from the possible outright sale there is also rumor that KKR might be interested in merging Saks and Neiman Marcus. The news helped Saks shares trade to a new 52-week high of $16.16 intraday.