Target takes an earnings hit as customers shop for deals

November 16, 2022

Target’s third quarter same-store sales increased 2.7 percent, better than the 2.51 percent gain expected by analysts, but its operating margin of 3.9 percent was well below the 5.35 percent that investors were looking for. Brian Cornell, Target CEO, said the chain saw “a significant change in consumer shopping patterns as we ended October and moved into the month of November. So clearly, it’s an environment where consumers have been stressed. We know they’re spending more dollars on food and beverage and household essentials. They’re looking for promotions and are looking for that great deal. And I would expect that promotional focus will continue throughout the holidays.”

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