Target Stock Plunges After Announcing Second-Quarter Results
Aug 17, 2022 By MarketDepth
Target (TGT:NYQ) announced second-quarter earnings on Tuesday, which came far below their guidance. In early June, Target announced a cut to its second-quarter guidance but didn’t meet its target. Target’s quarterly profit fell by 90% from the previous year’s. They stated that markdowns on unwanted items would affect Target’s bottom line.
Target’s stock is down 3% intraday but says it’s poised for a turnaround and looks toward the holiday season.
“If we hadn’t dealt with our excess inventory head on, we could have avoided some short-term pain on the profit line, but that would have hampered our longer-term potential. While our quarterly profit took a meaningful step down, our future path is brighter.”Chief Financial Officer Michael Fiddelke
Target’s earnings per share came in at $.39 versus $.72, and revenue came in as expected at $26.04 billion. The company saw explosive growth over the covid pandemic, but difficulty getting product off the shelves have taken a toll on its balance sheet. The company has cut its financial outlook twice this year, in May and then in June as the inventory backlog persists.
“I’m really pleased with the underlying performance of our business, which continues to grow traffic and sales while delivering broad-based unit-share gains in a very challenging environment.”CEO Brian Cornell