Target announced in a June 7 press statement that its earnings would take a short-term hit, after marking down unwanted merchandise and canceling orders in an attempt to rid itself of excess inventory in order to save on costs, causing its shares to drop nearly 4 percent in the afternoon.
The major retailer anticipates that its operating margin rate for the second quarter of 2022 will be at 2 percent, a big drop from its more optimistic 5.3 percent estimate released in May.
