Goldman Sachs Group, Inc.: The outlook for the second half of the year in the US retail industry is becoming more conservative, giving Target Corporation (TGT.US) a "neutral" rating.

According to the analysis of the second quarter financial reports and management meetings of US retail companies by Goldman Sachs Group, Inc., the industry as a whole has shown resilience in performance, but the outlook for the second half of the year is becoming more cautious. Goldman Sachs Group, Inc. noted that the majority of companies that have reported earnings have exceeded expectations in comparable store sales, gross margin, and operating profit margin; however, in terms of guidance, more companies have chosen to maintain or lower their full-year outlook rather than raise it, highlighting Goldman Sachs Group, Inc.'s view of the uncertainty in the second half of the year, including the impact of tariffs and the possibility of rising product prices in the second half. Most retailers performed better than expected in the second quarter: 57% of companies exceeded Goldman Sachs Group, Inc.'s expectations in comparable store sales, while 50% exceeded expectations in gross margin and operating profit margin. Giants such as Home Depot, Inc. (HD.US), Lowe's Companies, Inc. (LOW.US), Target Corporation (TGT.US), and Walmart Inc. (WMT.US) all achieved steady growth. However, companies' performance guidance tends to be conservative: only 36% of companies have raised the midpoint of their full-year EPS guidance, with most maintaining or lowering their expectations. This reflects management's concerns about inflation transmission in the second half of the year, rising tariff costs, and consumer uncertainty. Goldman Sachs Group, Inc. pointed out that companies generally believe that the impact of tariffs will be fully evident in the fourth quarter. Goldman Sachs Group, Inc. maintains a "buy" rating on BJ's Wholesale Club Holdings, Inc. (BJ.US), Home Depot, Inc., Lowe's Companies, Inc., and Walmart Inc., citing confidence in their strategies and market positions; they maintain a "neutral" rating on Target Corporation.