Target Reports Profit Plunge, Due to Warning Signs of Weak Holiday Sales
Target’s latest earnings report revealed a massive plunge in profits, as the retailer warned of weak holiday sales.
The retail chain reported on Nov. 16, that profits declined 49.3 percent in its fiscal third quarter, after struggling with unwanted inventory and fears of slow sales into the holidays.
Consumer spending has lately begun to slow due to rising prices and higher borrowing rates.
The bad news prompted company executives to lower their forecast for its most important season of the year, and they are now expecting a low-single-digit decline in comparable sales.
“In the latter weeks of the quarter, sales and profit trends softened meaningfully, with guests’ shopping behavior increasingly impacted by inflation, rising interest rates, and economic uncertainty,” stated Target Chairman and CEO Brian Cornell in the earnings release….