New splash of Target profits. The U.S. retailer posted second-quarter net income of $ 183 million, or 39 cents per share, for the three-month period ended July 30, down nearly 90% from 1.82 billion a year earlier. . Expectations of a less violent drop to 79 cents per share (consensus FactSet) were disappointing. Already in the first quarter, Target had reported profits down by 52% compared to the period a year ago.
Target has been forced to cut prices over the past few months to eliminate stocks of clothing, household items and other consumer discretionary items. In June, Target warned that it was canceling orders from suppliers and aggressively cutting prices due to a pronounced shift in spending by Americans in the wake of the surge in inflation.
Comparable in-store sales, on the other hand, increased 1.3% compared to 8.7% growth last year. Online sales increased by 9%.