KR - Target Misses The Mark And Pays A Price For It

2024-05-22 15:22:34 ET

Summary

• Target Corporation's shares dropped about 7.5% after disappointing financial results and concerning developments.
• Sales in the first quarter of 2024 fell 3.1% year over year, missing analysts' expectations by $10 million.
• The number of transactions and average transaction amount both declined, leading to a 3.7% drop in comparable store sales.
• Although shares are cheap, the company is facing some deeper issues that need to be addressed.
• Until this is done, expect the stock to continue to underperform the broader market.

May 22 ended up being a very bad day for shareholders of retail giant Target Corporation ( TGT ). As of this writing, around midday, shares of the company are down about 7.5%. This drop was in response to management reporting financial results that fell short of expectations and some other concerning developments that indicate weakness lies ahead. This is rather unfortunate for those involved. It's also disappointing as somebody who, just over a year ago, rated the business a ‘hold’....

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