Shares of Target (NYSE:TGT) fell 13.5% in May 2016, according to data from S&P Global Market Intelligence. Some of this slump was of Target’s own doing — and some of it wasn’t.
So what: First, the stock took a 5.5% dive on May 11 due to a bevy of disappointing earnings reports from Target’s sector rivals. Notably, Macy’s shares plunged 13% on 5.6% lower comparable sales and reduced full-year guidance targets. Target investors took this wave of retail weakness as a bad sign for their own holdings.
A week later, those pessimists were proven right. Target’s own first-quarter report came in, showing a 5.4% year-over-year revenue decline despite slightly higher comparable sales. Target shares took a 7% haircut the next day, and the stock was stuck at this level for the rest of the month.
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