Sam Boughedda

Paul Lejuez from Citi, a Citi analyst stated that Target’s recent poor news (NYSE:) is bad for other retailers as well.

After reporting the saw, it took three weeks for us to get back. Target Significantly reduce its guidance. The retailer also lowered its outlook due to a declining selling environment in discretionary goods, necessitating more markdowns to move inventory.

Lejuez said that although this may be a problem for TGT, it’s a positive for retail in general. He cited particular concern for those retailers who are involved in home and apparel categories, where TGT tends to over-invent.

Analysts said that Target was still having trouble adapting to new trends.

Old Navy Gap Inc is worst off when you consider the retail landscape. (), ,, , ,  and ,” wrote the analyst. “It’s going to feel like a recession in apparel: With all the debate about the health of the consumer and questions about whether we might see a consumer recession over the next 24 months, we believe regardless of whether this comes to fruition at a macro level by technical definition, it is going to feel like a recession in apparel as we look out to 2H22.”

Lejuez said Target’s quote regarding “aggressive options to control costs, including ongoing work with vendors to help offset inflationary pressures” is an incremental negative for brands with Target as a retail partner, including CRI, HBI, LEVI, and to a lesser extent .