Target posted earnings that missed analysts’ expectations, while also warning of possible fourth quarter challenges.
The retail company’s adjusted earnings came in at $1.54 per share, compared to analysts’ estimates for $2.17. Operating profit margin, at 3.9%, was well below estimates for 5.35%.
“With high rates of inflation continuing to erode their purchasing power, many consumers this year have relied on borrowing or dipping into their savings to manage their weekly budgets,” mentioned Target chairman and CEO Brian Cornell on an analyst call. “But for many consumers, those options are starting to run out.”
Target also cautioned about soft traffic trends for November.