May 18, 2016
Minneapolis-based Target reported weaker first quarter store sales and lowered expectations for the coming quarter. That news dragged down its stock by 8%, despite the fact that Q1 profit easily beat Wall Street expectations.
This is becoming a recurring theme of misery across the retail sector. Shares of J.C. Penney, Kohl’s, Macy’s, Nordstrom, and Wal-Mart also fell, under pressure from off-priced retailers like T.J. Maxx and Amazon.com.
Target earned $632 million for the quarter, but saw revenue slip to $16.2 billion, down from $17.12 billion. Additionally, a key performance measurement didn’t hit expectations, as sales at stores open at least a year rose only 1.2%, below the expected figure of 1.6%.