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Target warns profits will take short-term hit as it cuts back on excess inventory
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Target warned Tuesday that its profits will take a hit in the near term while it implements several measures to reduce excess inventory.
The Minneapolis-based retailer, which is facing excess inventory in several categories, said it's planning in part to issue additional markdowns, cancel orders and remove excess inventory in order to "right-size its inventory for the balance of the year."
The company said during its first-quarter earnings call last month that it had "softer-than-expected sales in several categories" during the first three months of the year, which resulted "in too much inventory in those areas."
RETAIL MARKDOWNS COULD BE COMING AS COMPANIES TACKLE EXCESS INVENTORY
Since then, Target CEO Brian Cornell said the company has "continued to monitor external conditions and have determined the necessary actions to remain nimble in the current environment."