Target’s third quarter earnings plunge 52% after it was forced to slash prices for Americans stung by inflation – while retail sales rose 1.3% in October as consumers spent more on gas, food, furniture and cars
- Target reported a 52 percent drop in profits for its third quarter after it was forced to slash prices repeated for Americans hurt by decades high inflation
- The company’s stock was down nearly 15 percent in pre-market trading
Target has seen profits plunge 52 percent in the third quarter after it was forced to cut prices for Americans hurting from decades high inflation.
CEO Brian Cornell has said that ‘sales and profit trends softened meaningfully, with guests’ shopping behavior increasingly impacted by inflation, rising interest rates and economic uncertainty.’
Target CFO Michael Fiddelke added that the company has lost $400 million in goods due to theft and other product loss this year as said that a tough holiday season was in store for retailers.
‘We expect the challenging environment to linger on beyond the holiday,’ Fiddelke told the Wall Street Journal.
Target shares were down nearly 15 percent in the pre-markets on Wednesday morning.
The company’s struggle comes after Walmart and Dollar General boasted above average performances on Tuesday as more middle-class shoppers pinched by inflation turn to discount supermarkets for bargains.
Despite the gloomy outlook US retail sales rose 1.3 percent in October, according to the US Census Bureau’s latest report on Wednesday, beating economist sales that it would only rise by 1 percent.
The report suggests that Americans might be more willing to splurge on the holiday season after retail sales have remained positive over the last three months following peak inflation of 9.2 percent in June.
Target reported a 52 percent drop in profits for its third quarter after it was forced to slash prices repeated for Americans hurt by decades high inflation
The company’s stock was down nearly 15 percent in pre-market trading on Wednesday
This is a developing story.
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