Target Earnings Q2 FY23
Revenue miss
Earnings beat
Target, says stores have seen a 120% increase in theft involving violence the first 5 months of 2023.
Earlier this year, Target said they expect to lose $1.3 BILLION due to theft in 2023.
This is up $500 million from theft losses in 2022.
Rising retail theft is a major issue.
Target CFO: "...the upcoming resumption of student loan repayments will put additional pressure on the already strained budgets of tens of millions of households...[our] updated sales expectation is meaningfully softer than our expectation at the beginning of the year"
Target misses on revenues, beats on EPS & comp sales of -5.4%.
CEO: "...we saw better-than-expected profitability in the face of softer-than-expected sales...we continue to take a cautious approach to planning our business.."
TARGET SLASHES FULL-YEAR FORECAST AS RETAILER WARNS ABOUT ECONOMIC UNCERTAINTY, RISING INTEREST RATES AND STUDENT LOAN REPAYMENTS
Beat on EPS l BUT missed on Revenue & guided ‘24 & next Q EPS DOWN by 10%+ . Same store sales still sh*t at -5.4%, yet EBIT margin at 4.8% & inventory also down17%. Stock’s at 16x current year P/E & 9x EBITDA. “Relief” bounce, but how high?
Comments