Investors need to be ‘slightly more defensive’ about retail market: Kevin Mahn
Hennion & Walsh Asset Management President and CIO Kevin Mahn joins a ‘Mornings with Maria’ panel to discuss the retail market’s outlook for the holiday season.
The chief financial officer of Target Corp. said Wednesday that theft has hurt the retail giant’s gross profit margin.
CFO Michael Fiddelke, speaking during the company’s third-quarter earnings call, said a factor affecting Target’s gross margin is "inventory shortage, or shrink, which is a growing problem facing all retailers."
Retailers use the term "shrink" to describe theft.
"At Target, year to date, incremental shortage has already reduced our gross margin by more than $400 million versus last year, and we expect to reduce our gross margin by more than $600 million for the full year," he said.
Third quarter gross margin rate was 24.7%, compared with 28% in 2021.
ORGANIZED RETAIL THEFT NEEDS STRICTER PENALTIES, US CHAMBER OF COMMERCE TELLS CONGRESS