Unite with Fellow Investors
Choose the Best Attorney
Follow Case Progress
id: 649, Created by Stan Vick, Scout
Target Corporation (TGT) Case on Misleading
What do I get by joining?
- You will get case updates and receive a payout in case of success
- If you would like to actively participate, you will be connected to the attorney
- No, you do not pay anything out of your pocket neither to us nor to attorney
18 Aug 2021Class period Start
17 May 2022Class period End
- Target widely missed profit estimates.
- $TGT dropped 25% and lost about $24.7B of its market cap.
- Investors suspect $TGT & its officers of misleading which led to investment losses.
On May 18, 2022, Target filed a press release containing the Company’s financial and operating results for Q1 2022 which revealed that Target had missed profit estimates widely, with cost of goods sold increasing 10% year over year and operating income declining to $1.3 billion from $2.4 billion in the prior year.
- Target also revealed that its operating margin was “well below expectations, driven primarily by gross margin pressure reflecting actions to reduce excess inventory….”
- Target further explained that the “gross margin rate reflected higher markdown rates, driven largely by inventory impairments and actions to address lower-than-expected sales in discretionary categories….”
- On an earnings call for investors CFO, Fiddelke noted that Target’s gross margin for the quarter was down nearly 4.3%, with approximately 3% of the 4.3% decline due to “the combined impact of impairments, markdowns, and other actions taken to rightsize our inventory position in categories that were too heavy….”
- CEO, Cornell attributed the excess inventory to Target’s inability to anticipate the pace at which consumers “continued refocusing their spending away from goods and into services.”
On this news, the $TGT price declined almost 25% and the Company lost about $24.7B of its market capitalization, seriously damaging investors.
Taking revealed facts and previous representations into account, Investors have reasons to suspect $TGT and its officers of misleading and financial misrepresentations which led to investment losses.
Failure to Disclose,
Shock Event Date
18 May 2022
29 March 2023
Lead Plaintiff Deadline
29 May 2023
Hon. Patrick J. Schiltz