Target sales ebb after Pride month shopper backlash and the company cuts profit outlook for 2023
Target’s second quarter sales were hit by inflation and a negative reaction by some customers, widely publicized on social media, to its Pride merchandise.
Target’s second quarter sales were hit by inflation and a negative reaction by some customers, widely publicized on social media, to its Pride merchandise.
The Minneapolis retailer expects high interest rates, which makes credit cards more expensive to use, and higher prices on food to continue to put a strain on customers and on Wednesday, the chain cut its profit and sales expectations for the year. In lowering its forecast, Target also cited the end of the student loan moratorium, which had provided one-time college students a little more financial breathing room.
Profit came in above expectations, however, as the Minneapolis chain brought inventories closer in line with cautionary spending on discretionary items by customers.
Shares rose 8% in pre-market trading before the opening bell Wednesday despite trimming profit expectations for the year.
Target is among the first major U.S. retailers to report quarterly financial results and the impact of rising prices and elevated interest on its customers will get a lot of attention ahead of a raft of quarterly reports from companies like Walmart other retailers.
Rating: 5