Target Corp. had a rare earnings miss in its first quarter as consumers pulled back spending not only on discretionary items but on groceries as well.
The discounter released its results two days after it announced that it would reduce prices on approximately 5,000 frequently shopped items across its assortments. The prices cuts are already in effect on about 1,500 items, with thousands more to take effect over the summer.
Target’s net income inched down to $942 million, or $2.03 a share, for the quarter ended May 4, from $950 million, or $2.05 a share, in the year-ago period. Analysts had expected earnings per share of $2.06. It was the retailer’s first profit miss in six quarters.
Source: Chain Store Age