One day after Walmart took a drubbing on Wall Street, Target is facing investor wrath after reporting quarterly profits that fell significantly short of expectations.
Shares of the retailer were down about 25% in early trading, after Target confirmed that supply-chain problems and higher fuel costs had impacted its profit margin. However, the company said customer traffic remains healthy.
Earnings per share came in at $2.19, compared to analyst expectations of $3.07. Revenue was a bit short, with Target reporting $25.17 billion in the most recent quarter (versus an expected $24.49 billion).
The stock sank instantly in the futures market, and losses continued after the opening bell.
On Tuesday, Walmart watched shares tumble more than 11% after it also announced that higher costs and supply-chain issues had impacted profits. Walmart shares continued to fall Tuesday, dropping another 4% in early trading.
Target did not provide an earnings-per-share estimate, but it did reiterate its revenue forecast. The retailer is expecting mid-single-digit growth this year and beyond, it says.
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