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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Unlike Walmart and Target, these stocks tend to do well when inflation is highWhen rising costs crimp corporate profits and curb consumer demand, some stocks have a record of performing well during periods of rapid inflation.
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Target Shares Crash After Inflation Crushes EarningsYesterday it was Walmart. Today is was Target’s turn to report quarterly results that showed sales soaring but profits crashing as the company was hit by higher costs for goods, shipping, and headcount. Well yeah, all of their sweetheart COVID19 deals/agreements with the various city governments are ending Ummm yeah .......I CALL BULLSHIT! So Target and Walmart are dealing with the same thing the rest of the world is dealing with? Got it 👍🏼
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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.
Source: Forbes - 🏆 394. / 53 Read more »