A lawsuit was filed on behalf of investors in Target Corporation (NYSE:TGT) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 04/18/2023 -- An investor, who purchased shares of Target Corporation (NYSE: TGT), filed a lawsuit over alleged violations of Federal Securities Laws by Target Corporation in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Target Corporation (NYSE: TGT) have certain options and for certain investors are short and strict deadlines running. Deadline: May 30, 2023. NYSE: TGT investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
On May 18, 2022, Target Corporation announced results for the first fiscal quarter ended April 30, 2022, including that Fiscal 2022 second quarter gross margin for the quarter was 26.75%, down 426 basis points from the prior year. Target Corporation announced gross margins were primarily affected by unanticipated changes in consumer spending, as well as higher supply chain costs. Additionally, Target Corporation announced inventory was $15.08 billion, up approximately $1.1 billion compared to fourth fiscal quarter of 2021. Target Corporation explained inventories remained elevated versus expectations due to changing consumer spending habits. Target Corporation also announced that it was revising its fiscal year 2022 outlook, such that fiscal 2022 guidance concerning operating margin was lower to range centered around 6% from a margin rate of 8% or higher. Target Corporation attributed the guidance reduction, in part, to unexpected cost headwinds.
Shares of Target Corporation (NYSE: TGT) declined from $268.98 per share in November 2021 to as low as $137.16 per share on June 30, 2022.
The plaintiff claims that between August 18, 2021 and May 17, 2022, Target made materially false and/or misleading statements and/or failed to disclose: (i) the true extent of Target's difficulty maintaining a balanced inventory of in-demand goods, despite its insights into changing consumer preferences; (ii) that Target was severely impacted by changing consumer preferences; (iii) that Target's inventory mix was significantly more sensitive to changing consumer preferences due to Target's practice of buying larger quantities ahead of season, and was therefore at significant risk of having to use markdowns to sell out-of-demand goods; and (iv) that, as a direct result of these changing preferences, Target's inventory increasingly became out-of-balance and overweight in bulky and unsellable goods between August 18, 2021 and May 17, 2022forcing Target to markdown its out-of-demand goods, thereby negatively impacting revenue.
Those who purchased shares of Target Corporation (NYSE: TGT) have certain options and should contact the Shareholders Foundation.
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