The department store chain Target plunges on Wall Street (-27%) following it missed forecasts for its first quarter results and warned of “high costs” which are hurting its profit margins.
The target published a earnings per share (EPS) of $2.19, well below forecast of $3.07.. Net income fell to $1.01 billion from $2.1 billion in the same period a year earlier.
And although its revenue of 25.17 billion exceeded the forecast of 24.5 billion, investors sanction its loss of profitability.
CEO Brian Cornell explained that the increase in sales has been “.accompanied by unusually high costs“In a scenario of high inflation in the United States.
“While we experienced healthy gross revenue growth in the quarter, We have been less profitable than expected or intended to be over time.“, acknowledged Cornell. Among the top issues, Target cited inventory issues and wage pressures.
The bad reception reserved for the results of Target comes on top of the bad reception reserved by the market for the accounts of Walmartwhich plunged on Tuesday following also issuing a warning regarding rising costs and the impact on its profitability.
