Target posts a stunning drop in profit. Stock plunges

[NotCynicalYet]

Anyone know if Targets fearless leeader BC saying anything about this? Like everything is fine, still profitable stores

I'm sure he's looking at our wins and opportunities and is excited to face the challenges to come!

Okay I may have to change my username.

 

[MxTarget]

I can only speak for my store, but we are 3.69% below our goal for the year so far. And we killed sales last year, goal was $59.67 million and we did $65.45 million.

It’s similar to our store, but are comps are +5%…I think the goals and forecasts are out of whack. We’re not in the same environment we’ve been in the last two years. Also, our company is still growing sales vs a lot of our competitors. It’s just costs are through the roof.

 

[MxTarget]

Something I found interesting is that Walmart blamed some of its drop in profits on overstaffing. If that's true, Target's inventory struggles must be even crazier than they seem, and they obviously seem bad. Because Target has been controlling their payroll to say the least. Where other retailers are looking at our model of hiring more seasonals/part-timers, we don't have any room to shift that way. Even though our stock prices took similar beatings, it's obvious who the big dog is. Going to be interesting to see what strategy we come up with.

I thought it was funny they mentioned having to rent off site storage so stores didn’t get too full. The amount of freight out in the network must be mind blowing, if even with such heavy pushes to the stores and still we’re have to rent space.

 

[MxTarget]

Target should have used that dividend money to increase hours, get through the backed up freight, get set up for Back-to School and try to get the company back on track, not pay out to the stockholders and then cut hours yet again to continue the downward spiral. Somebody up at corporate needs to google the definition of insanity…

A lot of the money Target made was used for stock buybacks which reduce the amount of outstanding shares to inflate the stock price. The biggest risk of that is exactly what we are seeing now…

 

[MxTarget]

My poor 401k. Might want to move my money to something else, as I have not been with the company for a few months now.

Target doesn’t allow you to invest in Target for your 401k anymore. All of them were rebalanced a few years ago, as the last recession wiped out alot of team members funds, as holding significant stock in one company is ultra high risk. 401k underperforming now are just due to the stock market in general.

 

[dannyy315]

It’s similar to our store, but are comps are +5%…I think the goals and forecasts are out of whack. We’re not in the same environment we’ve been in the last two years. Also, our company is still growing sales vs a lot of our competitors. It’s just costs are through the roof.

Diesel prices are averaging $6.53 here. I have a feeling lots of companies are seriously considering investing in electric semis, Tesla has one.

In fact, Walmart bought a bunch of them.

 

[MxTarget]

Diesel prices are averaging $6.53 here. I have a feeling lots of companies are seriously considering investing in electric semis, Tesla has one.

In fact, Walmart bought a bunch of them.

For sure. Walmart semis drivers, for the most part, are Walmart; whereas, our drivers are a third party. I imagine those companies will have to start to transition to something more cost effective if Target starts to tighten cost controls. Also, with the pod system they are piloting, it actually increases the amount of trailers required, so I imagine the cost will be significantly higher, if they continue to use diesel.

 

[dannyy315]

For sure. Walmart semis drivers, for the most part, are Walmart; whereas, our drivers are a third party. I imagine those companies will have to start to transition to something more cost effective if Target starts to tighten cost controls. Also, with the pod system they are piloting, it actually increases the amount of trailers required, so I imagine the cost will be significantly higher, if they continue to use diesel.

Well, companies that don't adapt with the future tend to struggle. If I were Brian Cornell, I'd direct the logistics team at corporate to look into privatizing their semi truck fleet and buying electric. Maybe it will negatively impact the bottom line the next couple years. But the future savings will be worth it.

 

[BurgerBob]

But where am I going to put all the expired meat that was just delivered? That and the 14 cases of one type of trail mix that showed up for reasons not known to man nor beast?

@Avocadioo why you shipping out expired meat? Not living up to your rockstar reputation!

 

[DC Diva]

And now all the payroll cuts make sense 😐

Bye Bye Bye bonus. Was good while it lasted.

 

[InboundDCguy]

Target doesn’t allow you to invest in Target for your 401k anymore. All of them were rebalanced a few years ago, as the last recession wiped out alot of team members funds, as holding significant stock in one company is ultra high risk. 401k underperforming now are just due to the stock market in general.

That’s half true.
If someone was invested in Target before they stopped offering it signed up for automatic rebalancing or “financial planners” (I think that’s what it’s called), then Target stock was dumped from your 401k.
But people who were invested before they stopped offering it and didn't do either of those things were/are allowed to keep it.

 

[Florida Dawg]

Anyone know if Targets fearless leeader BC saying anything about this? Like everything is fine, still profitable stores

Lol he probably not giving a fuck, Let the green paper roll into his office as he sits on the computer.

 

[waterspout]

Well, companies that don't adapt with the future tend to struggle. If I were Brian Cornell, I'd direct the logistics team at corporate to look into privatizing their semi truck fleet and buying electric. Maybe it will negatively impact the bottom line the next couple years. But the future savings will be worth it.

Based on what evidence? The electric supplier rate in my area just doubled their kilowatt per hour fee. All at once. So even electricity production isn't inflation proof.

Lots of people write as if electric everything is the future as if it's a fact. I'll admit it's the highest probable future. But it isn't a fact.

 

[Unleashed Dog]

Electric is a high portion of the future. It just may seem costly in some areas for a time. But it’ll be a worth investment.

Target should ditch the POD project for now. It’s the worst possible time to test tbh.

Try investing in its own electric truck fleet. Maybe try a small one out with some of the new DC’s they’re building and opening soon.

 

[Ringwraith917]

Our store has almost 2x as much softlines inventory right now as compared to last year. I do the RFID scan weekly and have the numbers from last year at this time. It's crazy, like did they think the economy wouldn't slow down after the stimulus and rent/mortgage deferment stopped?

 

[KarmaToBurn]

Is that wht I need three trailers to send out all the Salvage....

 

[KarmaToBurn]

Our store has almost 2x as much softlines inventory right now as compared to last year. I do the RFID scan weekly and have the numbers from last year at this time. It's crazy, like did they think the economy wouldn't slow down after the stimulus and rent/mortgage deferment stopped?

Nope, that's why the store I managed 15 years ago for another company shut down....

 

[Ringwraith917]

Is that wht I need three trailers to send out all the Salvage....

Our store has almost 2x as much softlines inventory right now as compared to last year. I do the RFID scan weekly and have the numbers from last year at this time. It's crazy, like did they think the economy wouldn't slow down after the stimulus and rent/mortgage deferment stopped?

This was almost a year ago. Inventory levels are more manageable now

 

[rd123]

Ok I think they started using this as an excuse to cut our hours again . Major hour cut for the two weeks out schedule !

 

[Luck]

This is old and its ironic because it is the exact opposite. Target beat expecations this past quarter.

 

[KarmaToBurn]

This was almost a year ago. Inventory levels are more manageable now

Not at my store... Yesterday's sweep was 15 pallets CRC / Salvage and I already have 4 ready for Sunday,,,, if they don't cancel it due to the last truck still not being pushed

 

[WHS]

Not at my store... Yesterday's sweep was 15 pallets CRC / Salvage and I already have 4 ready for Sunday,,,, if they don't cancel it due to the last truck still not being pushed

PSA

Trucks don’t get “cancelled”. They simply get held for a short period of time. Most of the time the transportation managers will tell your SD/DSD to suck it. We don’t have unlimited room or unlimited extra trucks for a 100+ stores to delay trucks because their management can’t run their store

 

[MrT]

PSA

Trucks don’t get “cancelled”. They simply get held for a short period of time. Most of the time the transportation managers will tell your SD/DSD to suck it. We don’t have unlimited room or unlimited extra trucks for a 100+ stores to delay trucks because their management can’t run their store

Yeah that's the problem 🙃

 

[rd123]

Then there are these random visits when we have to drop everything and start cleaning the backroom and zone the aisles while all the uboats are just sitting there to be pushed . When finally the visit is over here comes the fulfillment team asking for backup for the rest of your shift .

 

[smarthuddle]

Then there are these random visits when we have to drop everything and start cleaning the backroom and zone the aisles while all the uboats are just sitting there to be pushed . When finally the visit is over here comes the fulfillment team asking for backup for the rest of your shift .

Just keep your backroom clean and there won’t be a drop everything now moment