We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Target Expands Beauty Strategy With 600-Store Studio Rollout
Read MoreHide Full Article
Key Takeaways
Target will launch Beauty Studio on Sept. 10 in 600 stores, with 1,600 products from 90 brands.
Beauty net sales rose to $3.64B from $3.40B a year earlier, extending high-single-digit growth.
Target is adding prestige and global brands, advisers, testing, sampling and exclusive Circle offers.
Target Corporation (TGT - Free Report) is leaning into its high-performing categories to maintain top-line growth, placing beauty at the forefront of its retail strategy. During the second quarter of fiscal 2026, the retailer experienced high single-digit net sales growth in its beauty segment. Building on this sustained momentum, Target is taking a bold step in its Beauty strategy with the Sept. 10 launch of Target Beauty Studio in more than 600 stores nationwide and on Target.com.
The new concept will feature more than 1,600 products from 90 prestige, emerging and global brands, with more than two-thirds of the featured brands new to Target. In the second quarter, Beauty net sales rose to $3,639 million from $3,396 million a year earlier. Management had also highlighted sustained guest response to Beauty investments made earlier in the year.
Target Beauty Studio takes that strategy beyond assortment expansion. The concept centers on discovery, combining dedicated Beauty Advisors with product testing, rotating features, exclusive Target Circle offers and a center table that showcases brands through storytelling and sampling. The assortment spans skincare, makeup, haircare, fragrance, bath and body, nails and other fast-evolving beauty segments.
The launch also adds a stronger prestige and global dimension through brands such as Sunday Riley, Briogeo, Rom&nd, Lake & Skye and Tan-Luxe. Target had previously described Beauty Studio as an elevated, immersive experience supported by dedicated advisers.
As one of seven core priority areas receiving disproportionate capital and operational resources, the beauty segment represents a key pillar in Target’s effort to drive relevance with busy families. The upcoming studio expansion marks the next chapter in Target’s multi-year effort to expand its merchandising authority in beauty.
How Does Target Stack Up Against Its Industry?
Target, which competes with Dollar General Corporation (DG - Free Report) and Costco Wholesale Corporation (COST - Free Report) , has seen its shares rally 31.9% over the past three months against the industry’s 2.2% decline. While shares of Dollar General have risen 26.4%, those of Costco have fallen 4.5% in the aforementioned period.
Image Source: Zacks Investment Research
What Does Target’s Current Valuation Suggest?
From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 16.77, lower than the industry’s 28.25. However, the stock is trading above its 12-month median level of 14.61.
Target is trading at a discount to Costco (with a forward 12-month P/E ratio of 45.42) but at a premium to Dollar General (16.75).
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Target?
The Zacks Consensus Estimate for Target’s earnings per share for the current and next fiscal year has increased by $2.08 and 44 cents to $10.42 and $9.31, respectively, over the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Target Expands Beauty Strategy With 600-Store Studio Rollout
Key Takeaways
Target Corporation (TGT - Free Report) is leaning into its high-performing categories to maintain top-line growth, placing beauty at the forefront of its retail strategy. During the second quarter of fiscal 2026, the retailer experienced high single-digit net sales growth in its beauty segment. Building on this sustained momentum, Target is taking a bold step in its Beauty strategy with the Sept. 10 launch of Target Beauty Studio in more than 600 stores nationwide and on Target.com.
The new concept will feature more than 1,600 products from 90 prestige, emerging and global brands, with more than two-thirds of the featured brands new to Target. In the second quarter, Beauty net sales rose to $3,639 million from $3,396 million a year earlier. Management had also highlighted sustained guest response to Beauty investments made earlier in the year.
Target Beauty Studio takes that strategy beyond assortment expansion. The concept centers on discovery, combining dedicated Beauty Advisors with product testing, rotating features, exclusive Target Circle offers and a center table that showcases brands through storytelling and sampling. The assortment spans skincare, makeup, haircare, fragrance, bath and body, nails and other fast-evolving beauty segments.
The launch also adds a stronger prestige and global dimension through brands such as Sunday Riley, Briogeo, Rom&nd, Lake & Skye and Tan-Luxe. Target had previously described Beauty Studio as an elevated, immersive experience supported by dedicated advisers.
As one of seven core priority areas receiving disproportionate capital and operational resources, the beauty segment represents a key pillar in Target’s effort to drive relevance with busy families. The upcoming studio expansion marks the next chapter in Target’s multi-year effort to expand its merchandising authority in beauty.
How Does Target Stack Up Against Its Industry?
Target, which competes with Dollar General Corporation (DG - Free Report) and Costco Wholesale Corporation (COST - Free Report) , has seen its shares rally 31.9% over the past three months against the industry’s 2.2% decline. While shares of Dollar General have risen 26.4%, those of Costco have fallen 4.5% in the aforementioned period.
Image Source: Zacks Investment Research
What Does Target’s Current Valuation Suggest?
From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 16.77, lower than the industry’s 28.25. However, the stock is trading above its 12-month median level of 14.61.
Target is trading at a discount to Costco (with a forward 12-month P/E ratio of 45.42) but at a premium to Dollar General (16.75).
Image Source: Zacks Investment Research
What Do Earnings Estimates Signal for Target?
The Zacks Consensus Estimate for Target’s earnings per share for the current and next fiscal year has increased by $2.08 and 44 cents to $10.42 and $9.31, respectively, over the past 30 days.
Image Source: Zacks Investment Research
Target currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.