Target’s stock price dropped a staggering 25% after reporting earnings this week, marking the company’s largest single-day loss since the infamous Black Monday in 1987. Almost one-third of the company’s market value has been wiped out this week.
Adjusted earnings contracted a staggering 40% last quarter despite sales growing a modest 3%, reflecting unexpectedly high costs that pressured the company’s profit margins.
Other retailers have similarly reported sudden margin declines, leading to the worst week for retailers since the early days of the pandemic.