Target posts biggest earnings miss in two years
Target reported earnings Wednesday that came in far below Wall Street's expectations, something the big-box retailer attributed to slower than expected demand.
Target reported earnings Wednesday that came in far below Wall Street's expectations, something the big-box retailer attributed to slower than expected demand.
The company announced profits that fell short of forecasts by 20%, its widest miss in two years. Revenues, meanwhile, came in under expectations for the first time in more than a year.
The discouraging results came despite a heavily touted campaign to discount thousands of items, as well as a pushed-up holiday sale.
On a call with reporters, Target CEO Brian Cornell blamed the dismal quarter on “lingering softness in discretionary categories,” as well as costs associated with preparing for the short-lived port strike in October.
Target Chief Operating Officer Michael Fiddelke added that it was “disappointing that a deceleration in discretionary demand combined with some cost pressures have caused us to take our guidance back down after raising it last quarter.”
Rating: 5