Target Corporation Announces Updated 2022 Plan Focused on Inventory Optimization
Plan supports continued growth by providing greater flexibility to serve guests.
Company updates 2022 financial guidance.
The Company is planning several actions in the second quarter, including additional markdowns, removing excess inventory and canceling orders. The action plan also includes the addition of incremental holding capacity near
Additionally, the Company is further accelerating work that's already in flight, including rapid revisions to sales forecasts, promotional plans and cost expectations by category. Specifically, the Company is planning for continued strength in frequency categories like Food & Beverage, Household Essentials and Beauty, and is planning more conservatively in discretionary categories like Home, where trends have changed rapidly since the beginning of the year. The Company is also pursuing aggressive options to control costs, including ongoing work with vendors to help offset inflationary pressures, driving continued operating efficiencies, and reducing costs while preserving a strong guest experience. Finally, the Company continues to build additional capacity in the Company's upstream supply chain to support its future growth by adding five distribution centers over the next two fiscal years.
All of the actions announced today are the result of the Company's ongoing assessment of current industry performance, the operating environment and consumer trends.
In light of the decisions announced today, and based on the Company's current expectations for the economy and consumer environment,
The company continues to expect full-year revenue growth in the low- to mid-single digit range, and expects to maintain or gain market share in 2022.
Statements in this release regarding planned pricing, cost and operational actions and expectations regarding full year revenue growth and market share, operating margin rates in the second quarter and back half of the year, and improved profitability in the second half of 2022 and beyond, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause the Company's actions to differ materially. These risks and uncertainties include the possibility of further shifts of consumer demand away from the Company's higher margin discretionary categories and the risks and uncertainties described in Item 1A of the Company's Form 10-K for the fiscal year ended
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John Hulbert, Investors, (612) 761-6627, Joe Poulos, Media, (612) 761-0042, Target Media Hotline, (612) 696-3400