Target Stock Plunge Wipes $25 Billion As Inflation Squeezes Customers And Sends Costs Soaring—Spurring ‘Dramatic’ Earnings Shortfall

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Shares of Target collapsed Wednesday after the brick-and-mortar retailer posted disappointing first-quarter earnings.

Shares of Target collapsed Wednesday after the brick-and-mortar retailer posted disappointing first-quarter earnings spurred by unexpectedly high costs that offset rising sales—spelling more trouble for the broader retail industry just one day after competitor Walmart posted its own stock-market plunge....

In a morning email, Adam Crisafulli called Target's shortfall more"dramatic" than Walmart's worse-than-expected, which pushed the stock down 11% on Tuesday, adding there are"clearly" industry-wide problems as food and gas inflation draw spending away from discretionary merchandise and force"aggressive" discounting to clear out products.

 

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Target Stock Plunge Wipes $25 Billion As Inflation Squeezes Customers And Sends Costs Soaring—Spurring ‘Dramatic’ Earnings Shortfall'Inflation always hits the lower-income cohorts hardest and first,' and the latest retail results suggest that's starting to happen, says one expert.
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