2 Reasons Target Will Be a Post-Coronavirus Winner
If you just looked at Target's (NYSE: TGT) operating income and margin during the first quarter, you might be worried about how the retailer will fare in the next stages of the coronavirus crisis and beyond.
Target's operating income slid 59% and its gross margin rate fell to about 25% from more than 29% a year earlier. Like peers, costs related to wages and safety measures weighed on profit. And a decline in the sales of higher-margin discretionary items hurt too.
Still, Target's overall sales soared as customers rushed to the retailer's stores and online platform for the essentials. Two elements in particular -- both strengths in the recent earnings report -- bode well for the company's future.
Source Fool.com
