Target Stock Plunges After Gut Punch Inflation
MINNEAPOLIS — Target stock price fell more than 26% Wednesday morning after the retail giant reported disappointing first-quarter results.
The Minneapolis-based company reported first-half 2022 earnings below Wall Street expectations. Inflation and supply chain issues have eaten away at Target’s revenue.
Target took in about $1 billion from the start of the year through April. That number is about half of what it did during the same period in 2021, The New York Times reported.
Target plans to absorb the costs of inflation rather than passing them on to customers, even if that hurts profits, according to the Wall Street Journal.
“Throughout the quarter, we faced surprisingly high costs, driven by a number of factors, which resulted in profitability well below our expectations and well below what we expect to operate. over time,” Brian Cornell, president and CEO of Target Corporation, said in a statement.
“Despite these short-term challenges, our team remains passionately dedicated to our clients and serving their needs, giving us continued confidence in our long-term financial algorithm, which anticipates single-digit revenue growth and margin rate. operational by 8% or more over time.”
Target is far from the only corporate giant affected by inflation. Shares of Walmart took a nosedive after reporting similarly disappointing results on Tuesday.