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Target’s Profits Plunge 90% in Q2 Following Price Cuts

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Target’s (NYSE:TGT) earnings are out and they’re not looking good. Let’s take a look.

The company reported earnings per share of $0.39 versus $0.70 estimated on revenue of $26 billion versus $26.09 billion estimated.

And the FactSet estimate for same store sales growth was 2.8% and Target missed that, came in at 2.6%.

And a lot of Target’s growth is coming from food and beverages, beauty and household essentials, things like that, which makes sense considering inflation’s pushing people to spend more on essentials instead of non-essentials.

Target’s Gross Margin Sees Massive Drop in Second Quarter

And their gross margin for the second quarter came in at 21.5% compared to where it was a year ago at 30.4%. That’s a big drop.

And the company’s margins are hurting right now, guys, because they’re trying to get rid of all this excess inventory. And we’re seeing higher freight/transportation costs.

And as for the stock guys, we can see it’s selling off currently to the mid 170s down 2.6% after this earnings report. So what do you guys think? Let me know your thoughts. Follow along for more.

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