Target Corp. is off target again.
Just three weeks after a profit warning that saw its shares plunge the most since 1987, the big-box operator has cut its outlook again, as it seeks to address a glut of inventory amid a rapid shift away from pandemic purchasing patterns.
The company now expects a second-quarter operating margin of about 2%, compared with its previous guidance of a wide range around the first quarter’s 5.3%. Even if the margin recovers to 6% in the second half of the year, as the company expects, that puts the full-year guidance of an operating margin around 6% in peril.The shares fell as much as 7.8% on Tuesday morning before recovering slightly.
