Benzinga - by Aaron Bry, Benzinga Editor.
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.
Read Also: Target’s Q1 Earnings – Falling Revenues and Comp Sales Weigh On Retailer, But Inventories Fall By 80%
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%
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%.
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