Reported 5 months ago
Target's earnings for the first quarter fell short due to inflation impacting US households, with executive Brian Cornell attributing challenges to inflation in food and household essentials. Sales trends are normalizing in categories with eased inflation, but the strain was most felt in physical stores where traffic and transactions declined. Target shares dropped nearly 8% following the results, prompting the company to plan business conservatively for the rest of the year. To compete with Walmart, Target announced a plan to reduce prices on 5,000 items. Key figures included a 3.1% year-over-year decrease in net sales, a gross profit margin increase to 27.7%, and diluted EPS down 1% to $2.03.
Source: YAHOO