TARGET (TGT) Earnings Miss Analyst Expectations
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Summary:
- TGT share price is falling.
- Target earnings results missed analysts expectations.
TARGET crashes amidst earning expectations miss
Target’s share price is over 3.6% down on Wednesday, they earned an adjusted 39 cents per share, which came in well below analysts expectations. These results are in contrast to those of Walmart, however Target was able to maintain full year guidance.
“While these inventory actions put significant pressure on our near-term profitability, we’re confident this was the right long-term decision in support of our guests, our team and our business,” said Brian Cornell, chairman and chief executive.
Sales of $26.04 billion, slightly above expectations, were reported by Target (TGT) for the second quarter. Compared to Wall Street projections of a gain of 2.8%, same-store sales increased by 2.6%. In the second quarter, gross margin decreased from 30.4% to 21.5%.
“This year’s gross margin rate reflected higher markdown rates, driven primarily by inventory impairments and actions taken to address lower-than-expected sales in discretionary categories, as well as higher merchandise, inventory shrink, and freight costs,” Target said.
Target said current trends support its “prior guidance for full-year revenue growth in the low- to mid-single digit range, and an operating margin rate in a range around 6% in the back half of the year.”
TGT Price Chart
Sources: finance.yahoo.com, barrons.com
