Target Corp. (NYSE:TGT) reported a disappointing first-quarter performance.
The company's chair and CEO Brian Cornell blamed the retailer's challenging quarter on inflation, particularly in food and household essentials.
This has put a "strain on the consumer wallet," Cornell said during a call with reporters.
Target's quarter showed:
Despite a 3.1% year-over-year decrease in net sales to $24.5 billion, earnings per share (EPS) dropped by 1% to $2.03
It missed the estimated $2.05.
Gross profit margin came in at 27.7% compared to the expected 27.4%
Sticky inflation has been a topic of concern in the broader economy, as reported by Benzinga. The impact on consumer spending was also felt in the case of Lululemon (NYSE:LULU). The company's stock tumbled in March, partly due to its struggle to reach U.S. consumers amidst inflationary pressures.
Target responded to said pressures by slashing prices on essential items — a strategic move to counteract this trend and improve its competitive position against rivals like Walmart.
Price Action: Shares dropped by 7% in premarket trading following the announcement of the results. Target is currently trading at $143.70 per share, down 7.75%.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
塔吉特公司(纽约证券交易所代码:TGT)公布了令人失望的第一季度业绩。
该公司董事长兼首席执行官布莱恩·康奈尔将这家零售商艰难的季度归咎于通货膨胀,尤其是食品和家庭必需品方面的通货膨胀。
康奈尔在与记者的电话中说,这给 “消费者钱包带来了压力”。
塔吉特的季度显示:
据本辛加报道,粘性通货膨胀一直是整个经济中令人担忧的话题。Lululemon(纽约证券交易所代码:LULU)也感受到了对消费者支出的影响。该公司的股票在3月份暴跌,部分原因是其在通货膨胀压力下难以吸引美国消费者。
塔吉特通过削减必需品的价格来应对上述压力,这是抵消这一趋势并提高其与沃尔玛等竞争对手的竞争地位的战略举措。
价格走势:业绩公布后,股价在盘前交易中下跌了7%。目标目前的交易价格为每股143.70美元,下跌7.75%。
该内容部分是在人工智能工具的帮助下制作的,并由Benzinga编辑审查和发布。