TGT

Target Corporation

150.42
USD
2.46%
150.42
USD
2.46%
138.58 268.98
52 weeks
52 weeks

Mkt Cap 73.41B

Shares Out 488.04M

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Target Shares Slump as Q1 Earnings Lag Estimates

Target (TGT) - Get Target Corporation Report shares slumped after the giant Minneapolis retailer reported fiscal-first-quarter earnings that came up short of analyst estimates. "Throughout the quarter we faced unexpectedly high costs, driven by a number of factors, resulting in profitability that came in well below our expectations and well below where we expect to operate over time," Chairman and Chief Executive Brian Cornell said in a statement. The report followed by a day Walmart's (WMT) - Get Walmart Inc. Report posting of weaker-than-expected fiscal-first-quarter earnings and a reduction in its full-year profit forecast, as surging costs ate into the bottom line of the world's biggest retailer, At last check Target shares were trading off 21% at $169.49. The stock in mid-November had touched a 52-week high near $269. For the quarter ended April 30, Target earned $2.16 a share, a bit more than half the $4.17 a share it earned in the year-earlier quarter. Revenue rose 4% to $25.17 billion from $24.2 billion. A survey of analysts by FactSet produced consensus estimates of first-quarter earnings of $3.07 a share on revenue of $24.48 billion. Comparable-store sales moved up 3.3%. The FactSet survey had been looking for an increase of 0.9%. The higher sales particularly reflected frequently purchased categories, including food and beverage, beauty products and household essentials. Gross-profit margin narrowed in the quarter, to 25.7% from 30% in the year-earlier quarter, reflecting higher markdowns. In turn those markdowns reflected "inventory impairments and actions taken to address lower-than-expected sales in discretionary categories, as well as costs related to freight, supply-chain disruptions, and increased compensation and head count in our distribution centers," Target said. For fiscal 2023, Target continues to expect revenue to grow by low- to mid-single digits percent.

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