Target sinks in the stock market before another warning for inflation and hits Wall Street

2022-07-08 17:24:14 By : Ms. chunlin du

The company has launched its second 'profit warning' in just a month after stating that it will have to offer greater discounts and reduce the storage of discretionary products.The retail company Target launches a new 'profit warning', the second in a month, given the impact of the forecast and anticipates a new collapse in its shares.The price of its shares falls more than 3.5% in the stock market at mid-session on Wall Street, although it has come to give up close to 7% after the opening.The retail company said it will have to offer greater discounts, reduce the storage of discretionary products in the face of consumption weakened by inflation and will cancel orders.As reported in a statement, among the actions planned for the second quarter, it also plans to increase storage capacity near US ports to add flexibility and speed to the supply chain "most affected by external volatility."The company acknowledges an oversupply, especially in the home category, "where trends have changed rapidly since the beginning of the year," according to its market analysis.As a consequence, expectations have been lowered.The operating margin for the second quarter is reduced to 2% and 6% for the second half of the year.Still, the company expects full-year revenue growth in the single-digit range and expects to hold or gain market share in 2022.The revision of expectations has not been well received by the market, which is opting for sales, although it has moderated the expected drop in pre-opening.Its share price falls less than 2% and has dragged down other companies in the sector such as Walmart and Home Depot.This scenario also weighs on the sector in Europe.The British clothing and food company Marks & Spencer falls almost 4% and the clothing brand Next, close to 3. Kingfisher, dedicated to the home, also falls more than 4% on the London Stock Exchange, and the supermarket group Tesco, 1.4%.For its part, Wall Street returned to losses on Tuesday after the rebound experienced yesterday by the three indices.The Dow Jones fell to 32,690 points;while the selective S&P 500 subtracted 0.7%.In addition, the composite index of the Nasdaq market, where the main technology companies are listed, was down 0.9%.Information.Calle Canarias nº 49, 1st floor.Madrid, 28045, SpainAlso follow us on:Information.Calle Canarias nº 49, 1st floor.Madrid, 28045, SpainInformation.Calle Canarias nº 49, 1st floor.Madrid, 28045, Spain