Target Corp (NYSE: NYSE:TGT) shares are trading lower Wednesday after the company reported earnings results that were down sharply year-over-year as a result of aggressive inventory rightsizing.
Target reported second-quarter revenue of $26.04 billion, which missed average analyst estimates of $26.09 billion, according to Benzinga Pro. The retailer reported quarterly earnings of 39 cents per share, which missed average analyst estimates of 73 cents per share.
Comparable sales grew 2.6% year-over-year, reflecting 2.7% traffic growth. Target said its operating margin rate was 1.2% on the back of actions to reduce excess inventory.
"I want to thank our team for their tireless work to deliver on the inventory rightsizing goals we announced in June. 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 CEO of Target.
Target reaffirmed full-year revenue growth guidance in the low- to mid-single digit range. The company said it expects an operating margin rate around 6% in the back half of the year.
See Also: Nasdaq Futures Retreat Sharply As Investors Look Ahead To Retail Sales Data, FOMC Minutes; Apple (NASDAQ:AAPL) Doesn't Budge Despite Twin Price Target Hikes
TGT Price Action: Target has a 52-week high of $254.87 and a 52-week low of $137.16.
The stock was down 2.29% at $176.07 at time of publication.
Photo: courtesy of Target.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read at Benzinga