Upon releasing its first quarterly report for 2016 yesterday, Target’s stocks have dropped as the company reported lower sales. According to USA Today, Target’s stock dropped more than 8 percent in morning trading.
As denoted in the Q1 report, Target’s sales decreased 5.4 percent, falling from the $17.1 billion reported in 2015’s Q1 report to $16.2 billion. Target also stated in this year’s report that it expected its comparable sales of flat to go down 2 percent in its upcoming second quarter. Target’s net earnings were also down 0.4 percent at $632 billion from 2015’s Q1 reporting of $635 billion.
According to USA Today, Cornell was quoted in a call with the media as stating “We continue to see consumers spend cautiously. It’s been a very wet and cold start to the year in the Northeast and it’s been reflected in our sales,” Cornell stated in the Q1 report that the company was pleased with its first quarter finances and other increases.
Target’s decreased Q1 sales and expected comparable sales decrease for the company’s upcoming 2016 Q2 rattled investors enough for Target’s stocks to drop, according to a statement by USA Today. At market opening on Wednesday, May 18, 2016, Target’s stock had plunged to $67.48 from $73.59 as it had closed at market close the day prior to the report’s release on Tuesday, May 17, 2016.
Google Finance reported that during morning trading on May 18, Target’s stocks reached a low point of $65.50.
Additional key points from the 2016 Q1 Target financial report were as follows, in comparison to the first quarter reported from 2015:
As of 11:20 AM (PST) on May 18, 2016, Target’s stocks were reported as $68.03, according to Google Finance. Target’s price-earnings ratio was at 12.85.
DeliMarket News will continue to report on the company’s sales and financials as the retail side continues to burgeon with new strategies and shakeups in the industry.