Target Teetering On The Brink Of Financial Collapse

by Baxter Dmitry

The boycott against Target over its bathroom policy is costing the retailer more than anybody expected, as a record share price plunge and weak sales drive the big-box retailer to the brink of financial collapse.

The boycott against Target over its bathroom policy is costing the retailer more than anybody expected, as a record share price plunge and weak sales drive the big-box retailer to the brink of financial collapse.

In April last year after Target announced that it would welcome transgender customers to use any bathroom or fitting room that matched their gender identity.

Since then a determined grassroots boycott campaign has dug its heels in, and the company is having trouble hiding the financial damage.

Target’s already disappointing stock price plunged a further 13 percent in early trading on Tuesday, putting the embattled retailer on pace for its worst day in almost twenty years and dragging the company dangerously close to the financial abyss.

Target also reported sales and earnings that missed Wall Street’s expectations, in what was a devastating holiday quarter for the big-box retailer.

 

Target’s dismal outlook for fiscal 2017 has industry experts warning if results don’t turn around – and soon – the company will go to the wall.

Our fourth-quarter results reflect the impact of rapidly changing consumer behavior, which drove very strong digital growth but unexpected softness in our stores,” Target CEO Brian Cornell said in a statement, basically admitting the boycott has had a much stronger effect than the company expected.

Business is expected to remain tough for the fiscal year that just got underway. Target says it expects to earn $3.80 to $4.20 a share in 2017, way down on Wall Street’s expectation of $5.37 a share. That reflects expectations for a low-single digit decline in comparable sales, which will push the business to the wall if not arrested in coming months.

Falling off a cliff: Target's record share price plunge is showing no signs of correcting itself.

Falling off a cliff: Target’s record share price plunge is showing no signs of correcting itself.

Angry shareholders

Target will outline its plan to revitalize its business with shareholders Tuesday morning.

At the emergency meeting, under-pressure executives will detail the new financial model for fiscal 2017, the company said.

In the company’s earnings release, Cornell teased some of the announcements Target will make at that meeting, saying the company will accelerate its investments into a “smart network of physical and digital assets” and exclusive products. They are also being forced to lower prices in a desperate attempt to lure customers back into their stores.

We will invest in lower gross margins to ensure we are clearly and competitively priced every day,” Cornell said.

The company is also installing single-occupancy bathrooms in all of its stores to give critics of the policy more privacy – and hope the boycott campaign loses steam. The new bathrooms, which already exist in a majority of Target stores, are an expensive gamble for Target, costing the embattled retailer $20 million to install, according to Fortune.

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  • The Deplorable Neal Jensen

    Gooood…GOOOOOOD!!!! The boycott is working just as it should. It is destroying SOCIAL ENGINEERING at its inception….Now to destroy the other nanny state social engineering abominations as well. Keep up the great work, make ’em pay dearly for endorsing insane and immoral practices that make our CHILDREN LESS SAFE.

  • Lawrence Lief

    Good!

  • tsturbo

    Bankruptcy could not happen to a more deserving company. I would light my face of fire before walking into a Target store.
    I say F’em and good riddance. You reap what you sow…

  • Sameold

    So your company gets hacked and customers CC info is stolen and It hurts your bottom line. As you start to recover from that, you come up with a genius plan to alienate the majority to satisfy a small minority by letting grown men in the ladies room.

    And you wonder why your company is doomed….lol

  • SpeedersKill

    This is what happens when a company supports liberal loonyism. Nobody, left or right, wants men using the ladies BR their 10 year old daughter uses. Obama fought for that pervert crap but the public rejected it. The nov election was not about trump or hillary – it was about obama the sicko.

  • Jimmy Yost

    I quit shopping at Target about ten years ago when they put up a booth at the big gay parade in Seattle. Then later it came out in a few articles online that the owners of Target are queers. So I no longer shop at Target.

  • Frank Cicalese

    I can’t tell you how proud of Americans this makes me. Boycotters are stand up for TRADITIONAL values. Personally, I haven’t shopped at Target since their MORON CEO sucked up to the indecency.

    Keep it up, America! It’s time to let these PHONIES know the power of the “MORAL MAJORITY”. You don’t get rewarded for bowing to corruption indecency, and down right perversion.

  • piddaddy

    Talk about knowing nothing about their customers! The typical person identifying as a transgender doesn’t go to Target. Those who need to save a buck went to Target. How could Target management understand so little about their customer base?

  • Roy Hobbes

    Keep up the good work. In the past two years, even prior to the current “boycott”, my family has stepped into Target maybe twice when we were in a pinch. Prior to that, we dumped at least $300/month at Target on groceries and household goods. Not anymore. Granted, our dollars are still spent at retail giants (e.g., Walgreens, Amazon), but at least they don’t have an in-your-face, 24/7 policy of pushing same-sex relations.

  • Jeff Smith

    Kelloggs brand should be boycotted as well. They are 100% behind the Left’s program and Kelloggs press releases say that they are totally in favor of unlimited immigration. Gee, do you think that they are willing to throw the USA under the bus to use cheap labor? Noooo, that can’t be right. They are as American as Sharia Apple Pie.

  • D. McCue

    I still don’t understand all the fuss being made about a group that makes up 0.3% of the population. How does such a small group get so much political and social power? Something just doesn’t make sense.

    • Millie_Woods

      They’re part of ‘big queer’. And so is Target.

  • Brennan Kingsland

    Lower prices won’t work…the Silent Majority has finally learned to stand up and be counted. And we have excellent memories!

  • Helga Joubert

    Hey Hollywood, you’re next!

  • 2jeffersonianideals1

    I always liked Target. Perhaps one day biological reality will intersect fiscal reality and they will figure out that embracing fringe groups (perhaps reflecting <.01%) of the actual population is a bad business decision. I refuse to take my step-children their stores to shop. I won't expose my granddaughters to their sickness.
    Their loss. Their decision.