Target Corp. ( TGT ) reported a disappointing first-quarter performance.

The company’s chair and CEO Brian Cornell blamed the retailer’s challenging quarter on inflation, particularly in food and household essentials.

This has put a “strain on the consumer wallet,” Cornell said during a call with reporters.

Read Also: Target’s Q1 Earnings – Falling Revenues and Comp Sales Weigh On Retailer, But Inventories Fall By 80%

Target’s quarter showed:

Despite a 3.1% year-over-year decrease in net sales to $24.5 billion, earnings per share (EPS) dropped by 1% to $2.03

It missed the estimated $2.05.

Gross profit margin came in at 27.7% compared to the expected 27.4%

Sticky inflation has been a topic of concern in the broader economy, as reported by Benzinga. The impact on consumer spending was also felt in the case of Lululemon . The company’s stock tumbled in March, partly due to its struggle to reach U.S. consumers amidst inflationary pressures.

Target ( TGT ) responded to said pressures by slashing prices on essential items — a strategic move to counteract this trend and improve its competitive position against rivals like Walmart.

Price Action: Shares dropped by 7% in premarket trading following the announcement of the results. Target ( TGT ) is currently trading at $143.70 per share, down 7.75%.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.