The Clap
Target’s (NYSE: TGT) profits fell nearly 90% YoY during Q2 2022.
The Deets
Target saw a sharp decrease in profit as they offered large discounts on products to get rid of excess inventory.
Nevertheless, they maintained their forecast for the year as they chose to deal with the excess inventory now and accept the short-term effects in return for growth in the long term.
Why this Matters
Target’s stock price dropped by more than 3% following the earnings report.
Other big-name retailers like Walmart are making similar efforts to get rid of excess inventory in preparation for the holiday season.
Target earnings tumble in Q2 2022 🤕
