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.

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 (LULU  ). The company's stock tumbled in March, partly due to its struggle to reach U.S. consumers amidst inflationary pressures.

Target 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 (WMT  ).

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