What's going on?

American retailers Target and Lowe�s both issued quarterly earnings on Wednesday that hit the spot � but only one company was left feeling like a big shot.

What does this mean?

Target�s revenue rose 9.5% last quarter compared to the same period in 2020, driven by strong foot traffic in stores and a boost in back-to-school (rather than back-to-screen) spending. But investors still weren�t happy, sending Target�s stock down almost 2%: the chain�s all-important online sales grew �only� 10%, versus a pandemic-fueled 195% this time last year.

Home improvement retailer Lowe�s, meanwhile, posted a 1.6% drop in same-store sales compared to the second quarter of 2020, when the DIY market was in full swing with people stuck at home. Looking forward, however, Lowe�s increased its sales forecast for the rest of the year by 7%. Investors bought the story and sent the company�s shares up 10% in response, realizing that they may have been too hasty in lumping in Lowe�s with rival Home Depot on Tuesday.

Why should I care?

For markets: More arrows in the quiver?
Target�s share price is up around 40% so far this year, compared to Lowe�s 25%. Companies like the latter were star stocks in 2020, thanks to all those locked-down consumers confined to homes in need of a lick of paint. But with the great economic reopening now well under way, investors are questioning whether they can continue to deliver. Target�s in another boat entirely: its stores sell just about everything under the sun, meaning it�s more likely to benefit from people getting out and about again.

The bigger picture: Ready, aim, buy.
Both Target and Lowe�s unveiled new share buyback programs on Wednesday, worth $15 billion and $9 billion respectively. That�s great news for investors: a company buying its own shares reduces overall market supply, meaning each remaining share represents a greater portion of ownership. Assuming demand is constant, this provides an immediate boost to the company’s share price � and to investors’ portfolios.