Target posted its third-quarter results on Wednesday, reporting revenue of $2.6 billion against $2.5 billion in 2021, a 3.4% increase year-over-year. Net earnings came at $712 million, a 52.1% drop from the $1.4 billion in 2021. Diluted earnings per share stood at $1.54, down 49.3% from $3.04 in the previous year.
Operating income also took a loss, plummeting to $1 billion contrasted with $2 billion last year. Comparable sales rose 2.7% in the third quarter, while total sales registered annual 3.3% growth.
Target's CEO Brian Cornell attributed the numbers to the sales and profit trends slowing down in the last weeks, with "shopping behavior increasingly impacted by inflation, rising interest rates, and economic uncertainty... [that] resulted in a third-quarter profit performance well below our expectations." The company is "planning the balance of the year more conservatively," looking to optimize Target's operations and contribute to its continued growth, he added.
Following the announcement, Target's shares saw a drop of 14.16% in premarket trading at 6:56 am ET.
