Target’s Online Push Pays Off, But Profit Misses Forecasts
- Quarterly earnings miss estimates; gross profit margins narrow
- Cheap-chic retailer’s shares drop as much as 5.8 percent
Target, Lowe's Feel Profit Squeeze in First Quarter
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Target Corp. has been getting much better at delivering goods swiftly to customers. If only it could deliver profit as reliably.
Shares of the retailer slid Wednesday after first-quarter earnings fell short of analysts’ estimates. Investors punished the company for failing to improve gross profit margins as it had promised. Profit got squeezed by new initiatives to drive online sales and weaker-than-expected demand for apparel, hurt by unseasonable spring weather.