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Chris Machian/Omaha World-Herald via AP
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Target lost an additional $500 million from organized retail crime at its stores compared to last year, the company announced Wednesday.
CEO Brian Cornell said on the company’s fiscal first-quarter earnings call that slowed sales and hesitant shoppers are not the only reason for losses this year, as stolen goods put a sizable dent in the company's earnings.
"The problem affects all of us, limiting product availability, creating a less convenient shopping experience, and putting our team and guests in harm’s way," Cornell said.
Chief Financial Officer Michael Fiddelke said that lost inventory, referred to in retail as "shrink," reduced the company's first-quarter earnings by 1% compared to last year.
Target missed Wall Street’s earnings expectations last year for three consecutive quarters — putting the company in a desperate spot with shareholders as crime rates reach historic highs.