Target, the second largest U.S. Department store retailer, closed down 24.93% on Wednesday, the biggest one-day decline since the Black Monday stock market crash in 1987. The company became the second large U.S. retailer to cut its profit forecast in two days Brian Cornell, the company's chief executive, said there was little sign of easing the surge in costs in the first quarter, confirming investors' biggest concern about soaring inflation.
Target said on Wednesday that this year's operating profit will account for only about 6% of sales, 2 percentage points lower than the previous forecast. The company's adjusted profit in the first quarter was lower than the lowest value expected by analysts.
According to the financial report, target's revenue in the first quarter was US $25.17 billion, a slight increase of 4% year-on-year, and the market expected value was US $24.47 billion; The net profit was US $1.009 billion, down 51.9% year-on-year; Earnings per share was $2.17, lower than Wall Street's expected $3.07.
In fact, Wal Mart, the world's largest retailer, also announced its first quarter results yesterday. Similarly, due to the pressure of high inventory and high cost, the first quarter performance was lower than expected. Therefore, the stock's share price hit the largest one-day decline in 35 years on Tuesday.
