Why Target Shares Dropped Again Today
The rough week for Target (NYSE: TGT) shares continued Friday. The retailer's stock has dropped more than 8% this week, including today's drop of 1.7% as of 2:15 p.m. ET.
Yesterday, Target released two news items of note. Some investors took it as a troubling sign that the company said it would start offering holiday-season deals early this year. Target has already been in the news for accelerating promotions to help resolve a mishandled inventory situation from earlier this year. Supply chain disruptions and shifting consumer sentiment caused it to over-order products that weren't popular once they arrived. Yesterday's news of early holiday deals could continue the hit on profit margins Target has accepted to optimize its inventory. But those investors that got nervous from the holiday deal news may have overreacted.
Source Fool.com
