Target reported profit plunged 90% in the second quarter, falling far short of expectations, as inflation-weary customers pulled back on spending on nonessential items.
Retailers, including Target, have been forced to cut prices on general merchandise, such as clothing, electronics and home goods, because of excess inventory of goods. Consumers had to shift more of their spending to higher priced food and gasoline.But Target reported that its price cuts did little good: It ended the quarter with 1.5% more inventory than it had three months earlier and 36% more than it had a year ago.
Walmart also said it expects a 8% to 10% drop in annual earnings, though that's a narrower drop than it previously forecast.'Feeling the impact of inflation'The environment for Target and similar retailers remains"challenging," CEO Brian Cornell told investors Wednesday. But Target is seeing"an encouraging start to the back-to-school" shopping season, he said.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Bank of America's overdraft fees down 90% under new policyBank of America says the revenue it gets from overdrafts has dropped 90% from a year ago, after the bank reduced overdraft fees to $10 from $35 and eliminated fees for bounced checks.
Les mer »
2023 Land Rover Defender 90 Trophy Edition: Shorter Trophy, Same GloryThe 90 was initially left out of the Trophy Edition treatment, but Land Rover has rectified that mistake.
Les mer »
Authorities ID man killed after he crashed into pillar along Highway 90The Bexar County Medical Examiner’s Office has identified a 45-year-old man who was killed in a crash along Highway 90 on the Southwest Side on Sunday.
Les mer »
AI Blood Test Can Spot Lung Cancers With 90 Percent AccuracyIs machine learning the future of early cancer detection?
Les mer »
Target’s Profits Fall By Nearly 90 PercentTarget’s excess inventory issues are cutting into quarterly profits.
Les mer »