What I am looking at May 18, 2022
- Target (TGT) reports a major miss with shopping patterns changing. Last year, consumers were buying TVs, furniture and kitchen appliances, driven by Covid and working from home. Now dresses for going out, toys for birthday parties and luggage for travel. Retailers had the wrong inventory (TVs and appliances). Guest traffic still strong, up nearly 4% from a year ago, same store sales rose more than 3%. But higher prices for fuel and freight, much higher than anticipated, hit earnings. Adjusted EPS of $2.19 versus $3.07 expected. Shares fell 22% in premarket trading.