NEW YORK, May 01, 2023 (GLOBE NEWSWIRE) -- Kaplan Fox & Kilsheimer LLP reminds investors that a complaint has been filed on behalf of investors who purchased or otherwise acquired Target Corp. common stock (“Target” or the “Company”) (NYSE: TGT) securities between August 18, 2021 and May 17, 2022, inclusive (the “Class Period”). Click Here to Join Investigation.
If you acquired Target common stock during the Class Period and would like to discuss this case, please click here. You may also contact us by emailing pmayer@kaplanfox.com or calling (646) 315-9003.
If you are a member of the proposed Class, you may move the court no later than May 30, 2023 to serve as a lead plaintiff for the purported class. If you have losses, we encourage you to contact us to learn more about the lead plaintiff process.
On May 18, 2022, Target issued a press release for the first fiscal quarter ended April 30, 2022 (“Q1 Earnings Release”). According to the complaint, the Q1 Earnings Release 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 stated 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 May 18, 2022, Target's stock price fell $53.67 per share, or nearly 25%, to close at $161.61 per share.
The complaint alleges that defendants made materially false statements and/or failed to disclose the following adverse facts pertaining to Target’s business, operations, and prospects: (i) Target’s strategy for mitigating supply-chain constraints by over-ordering inventory had severely limited the Company’s ability to timely respond to evolving consumer behavior; (ii) as a result, the purported “massive influx of insights” gained from the extraordinary heightened demand during the pandemic could not be leveraged by Target to react to rapidly changing trends; and (iii) as a result of Target’s inability to timely react to changes in consumer trends, Target’s sales declined and the Company was left with an overabundance of inventory, forcing Target to take large markdowns, and severely impacting the Company’s financial results.
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If you have any questions about this Notice, your rights, or your interests, please contact:
Pamela Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
E-mail: pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
