Net earnings at Target Corp. took a steep dive for the second straight quarter as the company felt the impact of inventory reduction efforts.
The discount giant reported net earnings of $183 million in the second quarter of fiscal 2022, down a whopping 90% from $1.82 billion in the same quarter a year earlier. This followed a more than 50% year-over-year drop in the first quarter of fiscal 2022. Second quarter adjusted earnings per share (EPS) of $0.39 decreased 89% compared with $3.64 in the second quarter of 2021.
Operating income was $321 million in the quarter, down 87% from $2.5 billion a year earlier, reflecting a decline in the company’s gross margin rate. Second quarter operating income margin rate was 1.2%, compared with 9.8% in the prior-year period. Second quarter gross margin rate was 21.5%, compared with 30.4% in 2021.
Source: Chain Store Age
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