Summary:
- Target share price tanks after earnings release.
- Retailers getting blindsided by higher costs
Targets earnings announcement leaves investors shorting the stock
Target Corporation's stock tanked on Tuesday after they released their first quarter earnings, their adjusted earnings per share came in well below investor expectations. However, it was not only the first quarters earning report than sent the share price tumbling, the retailer announced they expected the second quarter that its income margin rate is unlikely to be similar to the first quarters 5.3% operating income margin rate.
Supply chain issues have also increased costs
Target claims to have been blindsided by rising prices in the current environment, causing many financial indicators to come out lower than expected. In addition, supply chain issues have also increased costs. Despite sales rising as customers are having to spend more to buy more (due to rising inflation) profits are still struggling.
Target Price Chart
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Sources: finance.yahoo.com, barrons.com
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