Followers | 679 |
Posts | 140788 |
Boards Moderated | 36 |
Alias Born | 03/10/2004 |
Tuesday, June 07, 2022 6:31:50 PM
By: Reuters | June 7, 2022
Target Corp (NYSE:TGT) is expected to shed by August the excess inventory that is hurting its profitability and be poised to show strong profits during the key back-to-school and holiday sales seasons, analysts said on Tuesday.
The retailer said it will work quickly to cull its unsold stock, which analysts believe is largely discretionary items like TVs and appliances that consumers have avoided as inflation spiked in recent months.
"Target is doing the right thing in acting aggressively to clear out excess inventory by taking the margin hit now. This will allow them to be better positioned ahead of the two most important retail selling seasons, back-to-school and holiday," said Ken Perkins, founder of research firm Retail Metrics.
"This should be a short-term problem."
The company on Tuesday cut its second-quarter operating profit margin forecast by more than half, to 2% from 5.3%, but expects to hit 6% in the second half of the year.
The inventory surge, up 43% in dollar value year over year at the end of the first quarter, hurt profitability.
But Target CEO Brian Cornell said the retailer was working to shed surplus stock by the end of the second quarter on July 31 and will cancel some orders, leading to "additional costs in the second quarter."
CFRA analyst Arun Sundaram said he believes the company will clear out its excess inventory in that time.
Going forward, the retailer will dedicate more shelf space to essentials like food and beauty items, where consumer spending is rising.
Target maintained its sales forecast for the year, and visits to Target stores have been rising since the start of the year, with the highest gains seen in April.
Even as inflation soared, traffic rose 10% that month compared to last year or 14.3% compared to pre-pandemic levels. In May, the trend slowed but traffic was still much higher than last year.
The strength in foot traffic helped Target shares pare losses on Tuesday, and they ended the day down 2.4%.
In the past month, full-year profit warnings from major U.S. retailers including Walmart (NYSE:WMT) and Target have stoked fears of recession.
Analysts, however, say the companies are well positioned, as their broad range of products - from eggs to kitchen appliances - and low prices attract shoppers.
"Target’s visit metrics have remained strong even amid significant economic headwinds, a testament to the company’s powerful draw, wide product offering and focus on value for its key audience," said Ethan Chernofksy, vice president of marketing at Placer.ai.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent TGT News
- Target Serves Up Exclusive Pickleball Collection with Popular Tennis Brand Prince • PR Newswire (US) • 04/16/2024 10:01:00 AM
- Tesla Resolves Autopilot Lawsuit, JPMorgan Unveils Potential CEO Successors, and More • IH Market News • 04/09/2024 10:39:30 AM
- Target Taps Kristen Wiig as 'Target Lady' to Bring the Excitement for Big Spring Savings at Target Circle Kick-Off and Target Circle Week Event • PR Newswire (US) • 04/02/2024 01:00:00 PM
- Sportsman’s Warehouse Announces New Executive Leadership • GlobeNewswire Inc. • 03/19/2024 08:05:00 PM
- Target Corporation Declares Regular Quarterly Dividend • PR Newswire (US) • 03/13/2024 10:30:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/11/2024 08:42:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/11/2024 08:39:37 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/11/2024 06:57:02 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/08/2024 03:49:15 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 09:46:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/07/2024 09:46:08 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/07/2024 03:17:33 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/06/2024 08:14:42 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/06/2024 07:44:44 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 03/06/2024 06:12:10 PM
- Airship AI skyrockets with DOJ contract; Carrier Global sells Fire Industrial division for $1.43 billion, and Latest News • IH Market News • 03/06/2024 11:01:03 AM
- Target Announces Plans to Deliver Enhanced Shopping Experience in 2024 and Beyond • PR Newswire (US) • 03/05/2024 06:00:00 PM
- Futures Pointing To Continued Weakness On Wall Street • IH Market News • 03/05/2024 02:03:27 PM
- Target Surpasses Expectations with a Robust 58% Increase in Q4 Profits • IH Market News • 03/05/2024 01:36:20 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/05/2024 12:48:41 PM
- Target Corporation Reports Fourth Quarter and Full-Year 2023 Earnings • PR Newswire (US) • 03/05/2024 11:30:00 AM
- U.S. Futures Dip, Crude Oil Fluctuates • IH Market News • 03/05/2024 11:05:54 AM
- AMD Hits Regulatory Roadblock, GitLab’s Stock Tumbles on Disappointing Earnings, and Latest News • IH Market News • 03/05/2024 11:05:08 AM
- Target Corporation to Webcast Presentation to Investors on March 5 • PR Newswire (US) • 03/04/2024 01:00:00 PM
- Target Announces Collaboration with Diane von Furstenberg for Affordable Spring Collection • PR Newswire (US) • 02/20/2024 02:01:00 PM
North Bay Resources Announces Successful Equipment Test at Bishop Gold Mill, Inyo County, California • NBRI • Apr 23, 2024 9:41 AM
Epazz, Inc.: CryObo, Inc. solar Bitcoin operations will issue tokens • EPAZ • Apr 23, 2024 9:20 AM
Avant Technologies Launches Advanced AI Supercomputing Network and Expansive Data Solutions • AVAI • Apr 23, 2024 8:00 AM
BestGrowthStocks.com Issues Comprehensive Analysis of Triller Merger with AGBA Group Holding Limited • AGBA • Apr 22, 2024 1:00 PM
Cannabix Technologies to Present Marijuana Breathalyzer Technology at International Association for Chemical Testing (IACT) Conference in California • BLO • Apr 22, 2024 8:49 AM
Kona Gold Beverages, Inc. Prepares for First Production Run Set to Launch May 17, 2024 • KGKG • Apr 22, 2024 8:30 AM