Target on Wednesday reported quarterly earnings that fell far short of Wall Street’s expectations, as the retailer coped with pricey freight costs, higher markdowns and lower-than-expected sales of discretionary items from TVs to bicycles.
Shares fell about 22% in premarket trading.
Here’s what Target reported for the fiscal first quarter ended April 30, compared with Refinitiv consensus estimates:
Earnings per share: $2.19 adjusted vs. $3.07 expected
Revenue: $25.17 billion vs. $24.49 billion expected
Sales did grow compared with that year-ago period. Comparable sales, a key metric that tracks sales at stores open at least 13 months and online, grew 3.3% in the first quarter. That is on top of a 23% increase in comparable sales in the year-ago quarter and it is higher than Wall Street’s projections for 0.8%
Target profit hit hard by high costs, inventory problems and markdowns https://www.cnbc.com/2022/05/18/target-tgt-q1-2022-earnings.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard
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