Target Warns: Things Will Get Even Worse. What's Next for Investors?
May 2022 was a rough month to invest in retail stocks. In back-to-back reports in the middle of May, first Walmart (NYSE: WMT) and then its smaller rival Target (NYSE: TGT) both reported abysmal earnings for their respective first quarters of 2022, causing each stock to suffer its worst one-day decline since Black Monday in 1987.
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In the case of both companies, inventories were a big part of the story. At Walmart, they rose 32% year over year, far outrunning sales growth of just 2%. At Target, the disparity was even greater, with sales rising 4% year over year, but inventories growing 44%, according to data from S&P Global Market Intelligence.
Source Fool.com
