(Finance) – Targeta US company active in the large-scale retail sector, recorded a revenue of $ 26 billion in the second quarter of 2022, up 3.5% from last year. The comparable sales grew 2.6% in the second quarter, reflecting comparable in-store sales growth of 1.3% and comparable digital sales growth of 9%. The gross margin was 21.5%, compared to 30.4% in 2021. This reflects higher discounts – driven primarily by inventory write-downs and actions taken to address lower-than-expected sales in discretionary categories – as well as reduced inventory and cost of major transportation.
L’Net income of the company fell to $ 183 million, or 39 cents per share, from $ 1.82 billion, or $ 3.65 per share, a year ago. The market, according to Refinitiv data, expected earnings per share of 72 cents on revenues of 26 billion dollars. The results, the company pointed out, reflect continued growth in store sales and traffic, and pressure on profits driven primarily by inventory reduction efforts.
“I want to thank our team for their tireless work to meet the inventory adjustment goals we announced in June,” said CEO Brian Cornell. “Although these inventory actions put significant pressure on our short-term profitability, we are confident that this was there long-term right decision in support of our guests, our team and our business.
Target claimed that the current trends support the above indications of the company for full-year revenue growth at a low-to mid-single digit rate.