Target shares collapse after earnings miss

May 18, 2022, 2:21 PM UTC
Target store with empty shelves
The strangled supply chain took a bite out of Target.
Getty Images

One day after Walmart took a drubbing on Wall Street, Target is facing investor wrath after reporting quarterly profits that fell significantly short of expectations.

Shares of the retailer were down about 25% in early trading, after Target confirmed that supply-chain problems and higher fuel costs had impacted its profit margin. However, the company said customer traffic remains healthy.

Earnings per share came in at $2.19, compared to analyst expectations of $3.07. Revenue was a bit short, with Target reporting $25.17 billion in the most recent quarter (versus an expected $24.49 billion).

The stock sank instantly in the futures market, and losses continued after the opening bell.

On Tuesday, Walmart watched shares tumble more than 11% after it also announced that higher costs and supply-chain issues had impacted profits. Walmart shares continued to fall Tuesday, dropping another 4% in early trading.

Target did not provide an earnings-per-share estimate, but it did reiterate its revenue forecast. The retailer is expecting mid-single-digit growth this year and beyond, it says.

Sign up for the Fortune Features email list so you don’t miss our biggest features, exclusive interviews, and investigations.

Read More

Great ResignationInflationSupply ChainsLeadership