Target Warns of Higher Costs Amid Surge of Essential-Goods Sales
- Rising employee expenses expected to weigh on profit
- Retailer benefiting from being deemed an essential business
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Target Corp. has seen a big boost from selling essential goods during the coronavirus pandemic, but higher costs and the likelihood of having to write off slow-selling merchandise, like clothing, will weigh on the profitability in the current quarter.
The potential for lower margins spooked investors Thursday, dragging the stock to a drop of as much as 5.9% in New York. The shares already were down 17% this year through Wednesday.