Recession Fears Are Forcing Target to Recalibrate. Does This Stock Have a Trick Up Its Sleeve?

Target (NYSE: TGT) updated investors on Tuesday, June 7, informing them that earnings for its second quarter (which ends July 31) will be worse than initially expected. The company downgraded Q2 operating margin estimates as it slashes product prices.

Consumer shopping behavior is quickly shifting away from items that were popular during the pandemic's earlier stages like home furnishings, discretionary products, and certain types of apparel. As a result, Target is stuck with inventory that has been on shelves for far too long. Folks are experiencing rapidly rising prices in categories like groceries and gasoline, forcing them to make cuts elsewhere in their budgets. Let's look at the details of the update more closely.

Source Fool.com