Target shares did well in the past month, jumping more than 20%, but the good ride seems to be over. The retailer released its second quarter report earlier this week that saw the company notch a second-straight earnings miss. This caused the Target stock to dip 2.88% in pre-market trading.
Just like the majority of retailers in the U.S., Target’s earnings suffered a hit due to rising inflation and change in customer habits. It also didn’t help that the company launched a series of discounts to clear its inventory and move on from items like electronics.
Target managed to beat the Wall Street estimates in the second quarter when it comes to revenue, reaching $26 billion versus the $25.84 billion expected. However, its profits fell 90% compared to the same period last year, while the diluted earnings per share came at $0.39 compared to the $0.73 estimated.
Still, the retailer is optimistic that its fortunes will change once the back-to-school and holiday season kicks in.
“We’ve talked to consumers, and our guests on a regular basis, and one of the things we keep hearing back is the guest wants to celebrate the upcoming holiday season — and Target is a big part of how they celebrate,” Target CEO Brian Cornell told reporters.
Target stock closed at $180.19 on Tuesday, marking its highest point since mid-May. However, earnings miss brought it down to $175.70 per share in pre-market hours. The stock is 22% down year-to-date.