Target predicted a gloomy second-quarter forecast as consumers pull back from non-essential purchases such as electronics and home goods, due to inflation.
However, the retailer maintained its full-year profit expectations as total sales rose 0.5 percent, in its May 17 quarterly earnings report.
The company’s poor forecast follows poor numbers from Home Depot, which is predicting a worse-than-expected drop in annual profit.
“American consumers continue to face difficult trade-off decisions as they juggle the wants and needs of their families … The fear of a looming recession weighs heavily on many American families,” Christina Hennington, a senior Target executive, told investors on the post-earnings call….