Target has reported financial results for the first quarter, marked by a 29 percent drop in profits.
The company has pointed to higher payroll taxes and other financial pressures as the culprit.
“Target’s first quarter earnings were below expectations as a result of softer-than-expected sales, particularly in apparel and other seasonal and weather-sensitive categories,” said Gregg Steinhafel, Chairman, President, and Chief Executive Officer of Target Corporation.
Net earnings decreased from $697 million, or $1.04 per share, to $498 million, or $0.77 per share, falling short of analysts’ expectations. Meanwhile, sales rose 1 percent to $16.71 billion.
“While we are disappointed in our first quarter performance, we remain confident in our strategy, and we continue to invest in initiatives, including Canada, our digital channels and CityTarget, that will drive Target’s long-term growth,” concluded Steinhatel.
