| Target Daily Stock Trend – Yahoo Finance Capture |
Shares plummeted 25% after Target, a leading US retailer, downgraded its earnings forecast after inflation had raised transportation costs significantly.
In the New York Stock Exchange on the 18th (local time), Target’s stock price plunged 24.93% from the previous trading day to $161.61.
Target said in its earnings release today that its quarterly net profit halved due to cost increases, and that this trend will continue until the end of this year.
Target estimates that the surge in diesel prices will add another $1 billion to transportation costs this year.
Inflation is driving up costs for retailers, significantly reducing profit margins.
“We had no idea that freight and transportation costs would rise this much,” said Brian Cornell, Target’s chairman and CEO.
Shares of Target and other retailers such as Walmart also plummeted due to increased transportation costs.
sinopark@news1.kr
