Target’s stock had been dented since the American Family Association’s boycott began amassing signatures in the millions, but we obviously had no way of knowing if people were actually boycotting the store.Target reported earnings this morning, and as it turns out, people made good on their promise.
As Reuters reports: Target reported a lower-than-expected increase in quarterly sales at established stores and gave a cautious outlook for the current period, citing volatile weather and weaker demand for electronics and groceries.Shares of the company, which also reported slower digital sales growth, fell more than 9 percent to $66.74 in early trading.
Target Chief Financial Officer Cathy Smith said apparel sales rose during the quarter and were stronger than other retailers’, but big swings in temperature hurt demand in that category.
“We did see a noticeable slowdown post-Easter,” Smith said on a media conference call.
Big swings in temperature? So they’re going to blame climate change? Funny – they seem to be neglecting the cause of that post-Easter sales slowdown. I’m going to go out on a limb and speculate that over 1.2 million boycotters have had an effect.
As the share price tanks, lets just hope ordinary investors aren’t taking it in the shorts over that as well.
[Note: This post was authored by The Analytical Economist]