Inside Target’s AI-First Retail Operating Model
How Target is embedding generative AI across stores, merchandising, and
Earnings
Adidas (Germany) reported Q4 sales rose 24% to €5.96 million ($6.2 million). For the full year revenue rose 11% to 23.7 million euros ($24.7 million). Operating profit rose to €1.34 billion ($1.4 billion) for 2024, up from €268 million ($277 million) in 2023.
Puma (Germany) reported Q4 sales rose 9.8% to € 2,289 million ($2,380 million). Preliminary full-year sales grew 4.4% to € 8,817 million ($9,170 million). EBIT was flat year-on-year, while net income fell to € 282 million ($293 million) from € 305 million ($317 million) a year ago.
Primark (UK) reported Q1 2025 total sales rose 2% over the 16 weeks to Jan. 4, helped by new store openings. However, like-for-like sales fell 1.9% during the quarter. This is the first time same-store sales have fallen since the pandemic lockdowns, as the company said its low-income shoppers had been hit by economic worries. The group said it was now targeting “low-single digit” sales growth in 2025 for Primark, having previously forecast “mid single digit” growth.
Burberry (UK) reported Q3 sales fell 7% to £659 million ($830 million). Same-store sales fell 4%, with APAC sales down 9%, EMEIA (-2) and Americas (+4%). Burberry recorded a 4% drop in sales over the Christmas quarter, but expects to recover from losses made in the first half of its financial year after a strong performance in the US.
Markets
How Target is embedding generative AI across stores, merchandising, and
As experimentation fades, AI is being wired into the core
Top-line growth is forecast to slow due to fragile demand,
Disciplined product curation, premium stores, and accessible pricing are driving
Mid tier brands are outperforming both luxury and most fashion
Brands face pressure to shore up profits and rethink strategies