Unexpected News Reported By Popular Minnesota Based Company
If you love going on Target runs, Target would love it if you'd do a few more of those right now. Earnings were just announced for Minnesota-based Target and according to CNN Business, that bullseye is not quite as bright as it used to be.
Profits Tanked 52% in the Third Quarter for Popular Minnesota-Based Target
It's been a bit since I've analyzed profit and loss statements for a company but I did last night for a very popular Minnesota-based company. Target Corporation just released their third-quarter earnings and in their press release they stated quite a few positives but one specific bullet point is making the news,
In light of an increasingly challenging environment, the Company lowered its topline and bottom line expectations for the fourth quarter. - corporate.target.com
The press release went on to say that, "Third quarter operating margin rate of 3.9 percent improved meaningfully compared with the second quarter results, but fell far short of expectations."
According to CNN.com, "inflation and a deteriorating economic outlook" is at fault for the last quarter as profits fell 52%.
The Good News According to Minnesota-Based Target
Target did have quite a few positive things that were pointed out in their press release including:
- Comparable sales increased 2.7 percent, on top of 12.7 percent growth last year.
- Comparable sales growth was driven by 1.4 percent traffic growth and a 1.3 percent increase in average ticket.
- Category performance was led by growth in frequency businesses including Beauty, Food and Beverage and Household Essentials, which offset continued softness in discretionary categories.
- The Company saw unit share gains across all five core merchandising categories.