On Wednesday, Target Corp., the Minneapolis, Minnesota-headquartered eighth-largest retailer in the United States, had raised holiday season sales forecast, mostly buoyed up by an early beginning of Christmas shopping among American consumers, though, the retailing industry giant had cautioned that a flare-up in inflation indicators alongside a lingering labor shortage would more likely to eat up a large chunk of its profit margins over current-quarter, leading to a more than 5.0 per cent decline in Target Corp’s shares’ prices.
On top of that, in the wake of a withering build-up in price pressures alongside growing shipping logjams, Target Corp shares’ prices, which had soared as much as 50.0 per cent this year, had rounded off the day 4.8 per cent lower to $253.86 after taking a tattering header of more than 5.0 per cent in pre-market trading.
In point of fact, Target Corp’s latest report had largely mirrored remarks from top-tier US retailers like of Walmart Inc., which had reported a 42 per cent plunge in gross profit margin in a bid to weather a staggering build-up in inflationary pressures.
Target Corp raises holiday quarter sales forecast
According to Target Corp’s Q3, 2021 earnings’ report that ended on October 30, the Minneapolis retailer’s overall sales jumped 12.7 per cent compared to a quarter earlier, while the American brick-and-mortar retailer had reported an adjusted profit of $3.03 per share, beating an analysts’ estimate of $2.83 a share.
Besides, as Target Corp’s inventories rose by $2 billion worth of consumer goods in third quarter compared to the same time a year earlier, Target CFO (Chief Financial Officer) Michael Fiddelke said, “(We) took specific actions to ensure we have a healthy inventory position ... even though those actions involve some incremental cost”.