According to the associated press, due to the rising costs caused by supply chain problems and inflation, the latest performance released by American retail giants is generally poor. The analysis pointed out that this reflected the decline in the profitability of U.S. retail enterprises and the soaring inventory, which cast a shadow on the development prospect of the U.S. consumer industry.
American retail giant target announced the first quarter financial report of fiscal year 2022 on the 18th. In the first quarter ended April 30, the company achieved an operating revenue of US $25.17 billion, higher than the market expected US $24.49 billion. However, due to the increase of fuel prices and wage costs, the adjusted earnings per share was only US $2.19, significantly lower than the market expected US $3.07. In addition, the company's net profit for the quarter fell by more than 50% year-on-year. Tajit warned that as fuel and freight costs exceed expectations and inflation is difficult to ease in the short term, it is expected that the profit margin of 2022 will be more impacted.
As of the close on May 18, target's share price fell 24.93%, the biggest one-day decline since the global stock market crash, namely "Black Monday", in 1987. The company's market value fell by nearly a quarter, from $100 billion to about $75 billion. Affected by the global covid-19 pneumonia epidemic, the supply chain crisis and the conflict between Russia and Ukraine, the operating costs of many enterprises have been high. Tajit executives said the supply chain problem would continue until at least 2023.
\u3000\u3000Briefing. com. Patrick oherr, a market analyst at, said that most enterprises face profit margin pressure due to high inflation and worry about falling into a stagflation environment. Target is a clear example.
Global retail giant Wal Mart announced its first quarter results on the 17th. Wal Mart's performance was lower than expected due to the pressure of high inventory and high cost. The company's share price fell 11.38% and 6.79% on the 17th and 18th, respectively.
According to Reuters, Wal Mart CEO Doug Macmillan said in a conference call after the earnings report that Wal Mart has experienced high inflation in the international market for many years, but the high inflation in the United States is unusual.
Quincy Crosby, chief market strategist of Prudential Financial Group, said that many leading retail enterprises could not pass on the increase of labor and supply chain costs, so the stock suffered a wide-ranging sell-off.
Jack EBLIN, chief investment officer of cresset capital management, said that as much disposable income is consumed by rising food and energy prices, any enterprise relying on household and non essential procurement is likely to suffer this quarter.
