Target, Feels the Impact of Inflation , as Quarterly Profits Continue to Fall.<br />According to CNN, Target reported that profits <br />plummeted 90% in the second quarter as inflation <br />drives consumers to cut back on spending.<br />The retailer's quarterly <br />net income dropped <br />to $183 million.<br />At the same time in 2021, <br />Target had a net income <br />of $1.8 billion. .<br />Target was forced to cut prices on general <br />merchandise due to excess inventory, <br />but the move did little to drive up sales.<br />The retailer ended the quarter with <br />1.5% more inventory than three months earlier <br />and 36% more than the same time last year.<br />After the lower-than-expected <br />profits were reported, shares in <br />Target fell 2% in premarket trading.<br />CNN reports that this marks <br />the second consecutive quarter <br />of plummeting earnings for Target.<br />The losing streak comes <br />after seven quarters <br />of strong profit growth.<br />On August 17, CEO Brian Cornell told investors that while <br />the environment for retailers remains "challenging," he believes <br />that earnings will start to recover in the next quarter.<br />On August 17, CEO Brian Cornell told investors that while <br />the environment for retailers remains "challenging," he believes <br />that earnings will start to recover in the next quarter.<br />The high-level story is: <br />The vast majority of the financial <br />impact of these inventory <br />actions is now behind us, Brian Cornell, Target CEO, via CNN.<br />Cornell said the company was seeing , "an encouraging start to the, back-to-school" shopping season
