Missoni Put the 'Tar' Back in 'Tarjay' (TGT)
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Price: $152.29 +0.18%
Rating Summary:
20 Buy, 27 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 23 | New: 12
Rating Summary:
20 Buy, 27 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 23 | New: 12
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No it's not Black Friday already.
That line you saw waiting outside your local Target (NYSE: TGT) this week and the crashing website was all the result of one thing - Missoni.
When Target brought the ultra-lux Missoni line into stores earlier this week, results were nothing short of fantastic. What fashionista doesn't want a sweater that normally costs $600 for $50? Or how about those cute baby girl clothes?
Thursday, analysts at Goldman Sachs had some data on just how successful the Missoni launch was.
The firm said a study of Target's online Missoni inventory found more than 50 percent were out of stock with 100 percent of baby & kids bedding and 97 percent of women's accessories and shoes out of stock as of Wednesday afternoon.
Target has had a post-recession focus on "needs" versus "wants" in stores. This had been driven more by food and consumables and less by discretionary categories. However, Goldman believes Missoni has helped turn the tide.
"It looks as if Missoni has put the Tarjay buzz back," the Goldman analyst commented.
While the direct financial impact from Missoni, which runs only until Oct. 22, will be small, the analyst said the indirect implications are "significant" as it helps enhance Target's "halo".
Goldman has a Buy rating and $57 price target on Target.
That line you saw waiting outside your local Target (NYSE: TGT) this week and the crashing website was all the result of one thing - Missoni.
When Target brought the ultra-lux Missoni line into stores earlier this week, results were nothing short of fantastic. What fashionista doesn't want a sweater that normally costs $600 for $50? Or how about those cute baby girl clothes?
Thursday, analysts at Goldman Sachs had some data on just how successful the Missoni launch was.
The firm said a study of Target's online Missoni inventory found more than 50 percent were out of stock with 100 percent of baby & kids bedding and 97 percent of women's accessories and shoes out of stock as of Wednesday afternoon.
Target has had a post-recession focus on "needs" versus "wants" in stores. This had been driven more by food and consumables and less by discretionary categories. However, Goldman believes Missoni has helped turn the tide.
"It looks as if Missoni has put the Tarjay buzz back," the Goldman analyst commented.
While the direct financial impact from Missoni, which runs only until Oct. 22, will be small, the analyst said the indirect implications are "significant" as it helps enhance Target's "halo".
Goldman has a Buy rating and $57 price target on Target.
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