Like Walmart, Target Is Solving 1 of its Biggest Post-Pandemic Problems
Target (NYSE: TGT) may have topped last quarter's earnings estimates. But between flat sales, a dramatic year-over-year dip in profits, and weak guidance for the quarter now underway, the earnings beat is a hollow victory.
There's more to like about the retailer's fiscal fourth-quarter results than is readily apparent, however. One of its more complicated challenges of late is being successfully contained. That's its inventory. Just a few quarters ago, it was sitting on way too much. Now it isn't.
You can't exactly blame them for putting themselves in the predicament. When the COVID-19 pandemic first showed signs of easing in 2021, retailers had good reason to believe a major recovery was taking shape for 2022. Target, along with peer and rival Walmart (NYSE: WMT), loaded up on merchandise for the impending boom in consumer spending.
Source Fool.com
