71
Fashion Jobs
L'OREAL GROUP
Multi-Brand Education Manager
Permanent · JOHANNESBURG
L'OREAL GROUP
E-Commerce Manager
Permanent · JOHANNESBURG
BEIERSDORF
Brand Manager
Permanent · DURBAN
G-STAR
Key Account Manager
Permanent · CAPE TOWN
ESTÉE LAUDER COMPANIES
Marketing & Sales Operations Manager (Sub Saharan Africa)
Permanent · JOHANNESBURG
ESTÉE LAUDER COMPANIES
Marketing & Sales Operations Manager (Sub Saharan Africa)
Permanent · JOHANNESBURG
PUMA
Payroll Administrator
Permanent · CAPE TOWN
ADIDAS
Senior Manager Sales: Shoe Channel - em South
Permanent · CAPE TOWN
ADIDAS
Senior HR Business Partner (6-Months Maternity Cover)
Permanent · CAPE TOWN
L'OREAL GROUP
Product Manager
Permanent · JOHANNESBURG
TREK
Country Manager
Permanent · SANDTON
L'OREAL GROUP
E-Commerce Key Account Manager
Permanent · JOHANNESBURG
BEIERSDORF
Precision Marketing & Audience Specialist
Permanent · DURBAN
CLINIQUE
Clinique - Roamer - Edgars Eastgate, Gauteng - 40 Hours - Full-Time - Permanent
Permanent · JOHANNESBURG
PANDORA
Sales Assistant Ppt 96 Hours Balito
Permanent · DURBAN
L'OREAL GROUP
Data Analyst
Permanent · JOHANNESBURG
HTNK
High-End Fashion/Denim Designer
Permanent · JOHANNESBURG
H&M
Talent Acquisition Specialist
Permanent · CAPE TOWN
ADIDAS
Specialist Franchise Excellence - Ems Africa Export
Permanent · CAPE TOWN
LOVISA
Full Time Team Member | v&a Waterfront, Cape Town
Permanent · CAPE TOWN
LOVISA
Store Manager | v&a Waterfront, Cape Town
Permanent · CAPE TOWN
PANDORA
Sales Assistant Pavillion
Permanent · WESTVILLE
By
Reuters API
Published
Jun 7, 2022
Reading time
2 minutes
Download
Download the article
Print
Text size

Target warns of weaker margins again as inflation curbs consumer spending

By
Reuters API
Published
Jun 7, 2022

Target Corp on Tuesday cut its quarterly margin forecast issued just weeks earlier, and said it would have to offer deeper discounts and stock more essential items, as inflation dents consumer spending.


Reuters



The surprise forecast revision is a big blow for the company, which in May joined larger rival Walmart in reporting a steep drop in quarterly profit, sending shockwaves through the retail industry.

With soaring inflation and higher gas prices, consumers are changing their shopping habits, catching many retailers off guard and forcing them to offer more discounts.

Target said it would focus on clearing excess inventory in the second quarter, cancel orders and speed up parts of the supply chain that could be affected by "external volatility".

The company is also prioritizing categories such as food and beverage, and household essentials over discretionary items such as home goods.

Target's strategy to keep a big portion of its products affordable is also proving to be costly for the retailer, with the company now saying it would raise prices to offset the unusually high transportation and fuel costs.

"While these decisions will result in additional costs in the second quarter ... (it will result) in improved profitability in the second half of the year and beyond," Target Chief Executive Officer Brian Cornell said.

The company now expects second-quarter operating margin to be about 2%, compared with its prior estimate of 5.3%. It also expects margins to be around 6% for the second half of the year, while maintaining its sales goals for the year.

Target's stock has lost about a third of its value so far this year.

 

© Thomson Reuters 2024 All rights reserved.