Posted on 08/17/2022 12:49:03 PM PDT by EBH
CNN — Target reported profit plunged 90% in the second quarter, falling far short of expectations, as inflation-weary customers pulled back on spending on nonessential items.
Retailers, including Target, have been forced to cut prices on general merchandise, such as clothing, electronics and home goods, because of excess inventory of goods. Consumers had to shift more of their spending to higher priced food and gasoline. But Target reported that its price cuts did little good: It ended the quarter with 1.5% more inventory than it had three months earlier and 36% more than it had a year ago.
The company said it reduced the amount of discretionary items it held in warehouses, but Target noted the sales on those items "put significant pressure on our near-term profitability."
Target's net income fell to $183 million last quarter, down from $1.8 billion during the same period a year ago. The company's revenue of $26 billion was up 3.5% from a year ago and roughly in line with forecasts.
After seven quarters of strong profit growth, this marks the second-straight quarter of plunging earnings at Target, although this decline was far more than the 40% drop in the previous quarter.
(Excerpt) Read more at wral.com ...
...but it’s not a recession.../s
Interesting.
I wonder if they can keep this up?
Sure, it has nothing to do with their increasing wokeness. Personally, I stopped shopping there years ago when they filed an amicus brief regarding gay marriage.
WaPo, NY Times and Janet Yellen will be along shortly to explain that we’re not in a recession and that a 90% decrease in profit is actually a sign of a strong economy.
They got greedy and increased prices even above inflation levels because Wall Street was rewarding companies that were doing that. Apparently, consumers didn’t like that tactic so much.
The profit plunge was due to their selling their excess inventory for pennies on the dollar. The real decline was when they realized they could not move the inventory and had to liquidate it. Why did they overbuy so much?
Wasn’t Target Stores involved with transgender restroom issues or some suck Wokeness suck they were pushing?
Everyone might think that's even more bad news for the senile puppet Sleepy Joe ...
... However ... what you're failing to realize is that ...
The senile puppet Sleepy Joe recently rode a bicycle on the beach without falling (at least while the cameras were rolling)! Even better, the senile puppet Sleepy Joe didn't shake hands with the air during his recent "well-deserved" vacation (again, at least while the cameras were rolling)! All of which means this is, by far, The Most Successful Week EVER (!) for the senile puppet Sleepy Joe! WOO-HOO!
/s
Me and my wife are part of that. We had a regular grocery bill, and then a Target grocery bill for things we couldn’t get at the grocery store. That’s been reduced to strictly dog food and treats. So yeah I’d say about a 90% reduction from us.
I’ve noticed large storage containers behind our Target. Overstocked. Some good bargains inside,
Target appeals now to Women Only. I bet they forgot about that.
You mean the pride infant onesie and the guy in the women’s restroom had nothing to do with it?
Have you been in a Target in the last few years?
It’s all female only. That’s what’s wrong.
Decades ago I liked Target a lot... before wokeness set in.
simple answer, yes. They’ve have many tools to use. RIF, close crappy stores, deeper discounts, close stores, line of credit
It would help if they had any inventory on their shelves. Whenever I’ve gone there looking for something, it looks like a wheat field after the locusts. I did have some luck locating a cereal that my local supermarkets were always out of, I ordered five boxes and picked them up after having lunch nearby. So that was good.
Target shoppers moved to Walmart….
Target is a strange bird. Very few hardware items, automotive, lawn and garden, etc. The grocery area is sketchy too.
Not sure what their draw is. I normally don’t go there because they don’t carry what I need.
Dollar General has a better selection.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.