(Target) Target Corporation now expects an operating margin of around 2% in the second quarter, lower compared to the 5.3% it projected earlier.
The retailer said that in the second half of the year, its operating margin would be around 6%. The company still reaffirmed full-year revenue in the low-to-mid single-digit range.
In the downgraded guidance, Target said that it is taking actions to address rising inventory, including more markdowns and canceling orders.
Target attributed the lower guidance to the external environment. The company says while its latest decisions will drive up costs, it will lead to higher profitability in the second quarter.
TGT: NYSE is down -3.83%.
