Here's the real reason Target's stock is dropping | CNN Business

  • 📰 CNN
  • ⏱ Reading Time:
  • 19 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 95%

Business News News

Business Business Latest News,Business Business Headlines

Target’s stock is falling because of broader changes in the US economy, the possibility of a recession, and Target’s over-exposure to discretionary merchandise, according to corporate executives and retail and investment analysts

Target’s stock has lost about a fifth of its value over the past two and half weeks. It’s not about what you may have heard. If you follow right-wing media or Twitter, you may have seen a lot of coverage recently about Target’s stock price falling because of outrage over its Pride Month clothing. It’s conceivable that some investors sold Target because of the negative coverage on Fox News and other right-wing outlets.

More than half of Target’s merchandise is discretionary – clothing, home decor, electronics, toys, party supplies and other non-essentials. Shoppers have shifted away from discretionary goods and instead are spending more on food, household essentials, travel and other services. These changes are hurting Target. Target’s sales inched up just 0.5% last quarter.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 4. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

How Chick-fil-A became a target for going 'woke' | CNN BusinessChick-fil-A has become a surprise target of right-wing ire following the discovery that the company has an executive overseeing its diversity, equity and inclusion policies.
Source: CNN - 🏆 4. / 95 Read more »