Target took a big hit from higher costs during the first quarter despite brisk sales and shares appeared headed for their most severe sell-off since the Black Monday market crash of 1987.
Profits for major retailers has come under pressure from both surging inflation and stubborn clogs in the global supply chain.
Target’s net income fell roughly 52% from a year ago to $1.01 billion, or $2.16 per share, in the quarter that ended April 30. Per-share earnings adjusted for one time costs were $2.19, far from Wall Street projections of $3.07 a share expected by industry analysts polled by FactSet.
