Target's 1st-qtr profit drops 29 pct on weak sales as weather, financial pressures take toll

  • Article by: ANNE D'INNOCENZIO , Associated Press
  • Updated: May 22, 2013 - 4:17 PM
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cavellMay. 22, 13 7:30 AM

poor weather? so i assume WALMART sales dropped also? walmart and target stores are in same towns.

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yathinksoMay. 22, 13 8:12 AM

Hmmmm....somehow I bet the compensation for those on the top tier will not be impacted, yet Target will again either lay off staff or move US jobs overseas to help their bottom line?

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Osh017May. 22, 13 8:16 AM

Cavell - if you read the article, you would have taken note that....."Target is the latest in a string of companies including rival Wal-Mart Stores Inc. that underscore how weather and other pressures on lower- to middle-income shoppers hurt business in the first couple months of the year." A similar AP story on Wal-Mart's Q1 earnings included..."Wal-Mart blamed a litany of factors affecting its budget-conscious customers, including a payroll tax increase, delayed tax refunds, job worries and bad weather. It is the latest in a string of big-name, consumer companies from McDonald's to Macy's, to cite such hurdles in the first quarter of the year."

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dumbgopMay. 22, 13 8:20 AM

Cold weather? Doubt it, but it could have something to do with this really horrible economy that you media folk are trying to tell us is doing so well.

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dumbgopMay. 22, 13 8:21 AM

I'll bet their sales from EBT card holders are doing very well.

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doubletapMay. 22, 13 8:26 AM

@Cavell, if you read the article to the end, you will find this bit of information: "Wal-Mart also offered a quarterly profit outlook that came below Wall Street's projections. Wal-Mart blamed a litany of factors affecting its budget-conscious customers, including a payroll tax increase, delayed tax refunds, job worries and bad weather." So yes, WalMart did suffer the same and also blamed weather.

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boozlesMay. 22, 13 8:27 AM

Incomes have stagnated or plummeted and jobs are nowhere to be found, food and gas prices have increased substantially. Most people are barely making ends meet. This is what happens when all the money gets siphoned upward. Its called the "Trickle Up" theory of economy that rewards the wealthy and punishes the middle and lower income people.

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swmnguyMay. 22, 13 8:47 AM

Let's bear in mind, Target is still on pace to make a profit of $2,000,000,000 this year. They're making money; just not as much.

"Cold weather?" Hah. My household needs just as much bleach, toilet paper, food and clothing when it's cold. Maybe more than when it's warm. No, the issue is "financial pressure." Wal-Mart executives have been very forthcoming about this. It's obvious the lower 2/3 of income-earning households are getting crushed in this economy. Printing money and putting into the vaults of the biggest financial institutions may have saved them from the consequences of their mismanagement, but it has sacrificed the engine of America's economy, which is the middle class.

Target is doing just fine. The activist shareholder casino gamblers might not like getting "only" 8% per year on their investments, but they need learn to shear the sheep, not skin it. If they keep siphoning off the lifeblood of the economy, all their holdings will go to 0. The point of being in business is to be able to go on doing business, not to make a one-time killing for speculators who have nothing else to do with the business.

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scubadoo68May. 22, 13 9:05 AM

swmnguy - Well said. When the bottom dollar is to make record profits vs. economic sustainability, the rest of us suffer. I can't complain about my finances but I worry about the predatory practices of many large corporations (not necessarily saying Target is one of them) and the continuing effect they have on our economy.

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cman2500May. 22, 13 9:22 AM

We have had a number of large companies with weak sales but the Kool-Aid drinkers always say the recovery is around the corner ? A week ago it was the better than expected weather's fault for the big Wal-Mart miss. Today, it is the turn of that other retail bellwether, Target, to blame sunny days.Of course, what this miss really means is that the payroll tax impact on consumption, so well seasonally-adjusted out of the wholesale retail sales numbers, and thus PCE and GDP, and which Goldman has been so inquisitively looking for and not finding at the national level leading it to believe the US economy is steadily on the mend, is more than present at the micro level. One only has to look. And with gas prices set to rise back to all time highs in a day or two, one can forget hopes that the fade in the payroll tax hike's impact on consumption will be promptly forgotten as other forms of taxation strip the already empty consumer wallet even more bare. Next stop recession then depression after Obamacare kicks in people have no clue how bad things are going to get enjoy it folks.

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