Walmart Home Depot Stock Slump As Target Signals Summer Discounts


Updated at 3:01 pm EST

Walmart  (WMT) – Get Walmart Inc. Report shares moved sharply lower Tuesday, with Amazon  (AMZN) – Get Inc. Report, Costco  (COST) – Get Costco Wholesale Corporation Report and Home Depot  (HD) – Get Home Depot Inc. (The) Report following suit, as investors dumped retail stocks in the wake of Target’s  (TGT) – Get Target Corporation Report surprise warning on profit margins and the prospect of deeper near-term discounts from overstocked merchants over the summer months.

Target, which cautioned earlier this year that its bigger-than-expected 35% build-up in overall inventories would likely trigger price cuts, said Tuesday that deeper discounts would be needed to shift the excess goods, adding that operating margins would narrow to around 2% over the current quarter before rebounding into the second half of the year.


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