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(紐約證券交易所代碼:TGT)公佈了令人失望的第一季度業績。
該公司董事長兼首席執行官布萊恩·康奈爾將這家零售商艱難的季度歸咎於通貨膨脹,尤其是食品和家庭必需品方面的通貨膨脹。
康奈爾在與記者的電話中說,這給 “消費者錢包帶來了壓力”。
塔吉特的季度顯示:
據本辛加報道,粘性通貨膨脹一直是整個經濟中令人擔憂的話題。Lululemon(紐約證券交易所代碼:LULU)也感受到了對消費者支出的影響。該公司的股票在3月份暴跌,部分原因是其在通貨膨脹壓力下難以吸引美國消費者。
塔吉特通過削減必需品的價格來應對上述壓力,這是抵消這一趨勢並提高其與沃爾瑪等競爭對手的競爭地位的戰略舉措。
價格走勢:業績公佈後,股價在盤前交易中下跌了7%。目標目前的交易價格爲每股143.70美元,下跌7.75%。
該內容部分是在人工智能工具的幫助下製作的,並由Benzinga編輯審查和發佈。