Here come the sales.
Welcome to the Know the Difference Minute for Tuesday, June 7th.
Target is stuck with too much stuff. That’s the simplest way to explain why it has warned investors to brace for a short-term hit. 
The $15 billion of inventory is 43% higher than a year-ago. Much of it was late to arrive because of supply chain issues. It’s also not what consumers want now. They’ve pivoted from COVID categories. 
Bargain shoppers will love the inventory clearance sales, but company management will have to gut it out over the 2nd quarter while slashing profit margin expectations. 
However, the company does anticipate a better-than-expected second half of the year as they fine tune inventory to better match what consumers really are buying. 
Target’s not alone. Walmart and others are stuffed with the wrong inventory that shoppers don’t need or want. 
I’m Dave Spano from Annex Wealth Management.  That is your Know the Difference Minute.