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• The retailer plans to mark down unwanted items and cancel orders
Target Corp (NYSE: TGT) on Tuesday slashed its profit margin expectations for the second quarter as it attempts to remove excess inventory.
The retailer plans to mark down unwanted items and cancel orders as well to get rid of extra inventory.
Shares of the company fell 2.31% at $155.98.
“While these decisions will result in additional costs in the second quarter, we're confident this rapid response will pay off for our business and our shareholders over time, resulting in improved profitability in the second half of the year and beyond," said CEO Brian Cornell.
Target now expects its second-quarter operating margin rate to be in a range around 2%.
For the back half of the year, Target now expects an operating margin rate in a range around 6%, a rate that would exceed the company's average fall season performance in the years leading up to the pandemic, the retailer said.
Target said it still expects full-year revenue growth in the low- to mid-single digit range, and expects to maintain or gain market share in 2022.
Picture Credits: Getty Images
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