Target Reports Rough Second Quarter
Minneapolis, MN (KROC AM News) - Owners of Target stock took a beating Wednesday as the company’s common shares were down more than 5-percent in morning trading.
The big slide was the result of the Minnesota-based retailer’s financial performance during its second quarter - and forecast for the rest of the year.
Target says its 2nd quarter revenues were down more than 7-percent from the same period a year ago (falling from $17.4 billion last year to $16.2 billion this year). Its net income was off by nearly 10-percent, falling from $750-million to $680-million.
Target’s CEO says based on the current retail environment, “ the company believes it is prudent to lower its expectations for comparable sales in the second half of the year.”
The company is forecasting comparable sales growth in the range of zero to 2-percent lower.