(Target) Shares of Target Corporation fell more than 24% in premarket on Wednesday after net earnings fell by 51.9% from the prior year to $1.009 billion.
Target grew sales by 4% year-over-year to $24.83 billion. Comparable sales increased by 3.3%, on top of a 22.9% increase in the last year.
The retailer reported an operating margin rate of 5.3%, which was below estimates. The margin was dragged by actions to cut excess inventory, higher freight and transportation costs.
The company reported earnings per share of $2.16 in the quarter, which was 48.2% below the previous year. The adjusted EPS was $2.19, down by 40.7%.
Target said that in the second quarter, the operating margin rate will be in a wide range centered around its first quarter’s 5.3% operating margin rate.
In FY22, Target expects low-to mid-single digit revenue growth. The operating income margin rate is expected in the region around 6%.
TGT: NYSE is down -24.08%.
