Target Hit by Worst Rout Since Black Monday as Margins Sag
- Company sees lower operating margin amid squeeze on costs
- Share plunge drags down other retailers, hits broader market
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Target Corp. plunged the most since 1987’s Black Monday crash after becoming the second big retailer in two days to trim its profit forecast.
A surge in costs during the first quarter shows little sign of easing, Chief Executive Officer Brian Cornell said. Operating profit will amount to only about 6% of sales this year, 2 percentage points below the previous forecast, Target said Wednesday. And the company’s first-quarter adjusted profit missed the lowest of 23 analyst estimates compiled by Bloomberg.