Target, Lowe’s, TJX and more
A crowd of shoppers walks in front a Target store in the Lycoming Crossing shopping center in Muncy.
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These are the headline-grabbing companies in midday trading.
Target – Shares plunged 25.6% after the retailer reported disappointing quarterly resultsHigh fuel prices and inventory problems were the reasons for Target’s decision to cancel. Target’s adjusted quarterly profit was $2.19 per share. This is lower than the $3.07 consensus Refinitiv estimate. Target reported lower sales than expected of discretionary items.
Walmart – Walmart dropped 7%, falling for a second session after suffering its worst one-day loss since 1987 on Tuesday. Target’s quarterly report was similar to Target’s. Walmart reported in its disappointing first-quarter report Tuesday.
Lowe’s – The home improvement retailer’s shares fell 6.3% on the back of weaker-than-expected revenue for the first quarter. According to Refinitiv. Lowe’s revenue was $23.66 billion, compared with the $23.76 forecast. According to Lowe’s, cooler spring temperatures have hurt outdoor supplies demand.
Dollar Tree, Costco – Retail names were dragged lower Wednesday by industry giants Target and Walmart, both of which reported struggling with rising costs and inventory woes. Dollar Tree shares plunged by more than 16% Dollar GeneralCostco fell about 12% and lost more than 11%
TJX Companies – Shares of the retailer jumped 6.3% after the company reported quarterly earnings that beat analysts’ estimates by about 8 cents per share, according to Refinitiv, as other retailers report seeing inflation cut into their profits.
Shoe Carnival – Shares rose 15.5% after the footwear retailer beat Wall Street expectations in its latest quarter. Shoe Carnival earned 95 cents per share in its most recent quarter, which is nine cents higher than the Refinitiv consensus. Company also increased its outlook for the full year.
Container Store – Shares gained 8.7% after the storage and organization products retailer posted better-than-expected profit and revenue for its latest quarter. Container Store stated that it plans to achieve $2 billion annually in sales by 2027.
Doximity – The cloud-based platform dropped 11.3% after issuing a current-quarter revenue forecast below Wall Street estimates.
Warby Parker – The stock dipped 9.3% after Goldman downgraded Warby Parker to neutral from buy. Goldman stated that it expects the retailer to grow more slowly after reporting lower-than-expected quarter-end earnings.
— CNBC’s Tanaya Macheel contributed reporting