…Target stock down nearly 24% in recent trading. The retailer also said for the fiscal second quarter it expects its operating income margin rate “will be in a wide range centered around first quarter’s operating margin rate of 5.3%.”The company said it continues to expect low- to mid-single digit revenue percentage growth in 2022. Target now expects its full-year operating income margin rate will be about 6%, down from a previous target of 8%.
Retail is a measure of how much money people have, and are willing to part with. All of this began with the rising energy costs, which passed through manufacturers and shipping, hit the consumers directly through fuel costs, and are now traveling together and meeting at those who sell to the consumers. Prices have risen and consumers have less money, making this both predictable and inevitable.
Until the energy situation is remediated, and the effects of that follow on behind the current effects of high energy, this will not be easily fixed by anything else.
