What drove Target's operating profit decline in 2023?

Target's operating profit decline in 2023 can be attributed to a combination of factors:

1. **Inventory Shrink and Organized Crime**: Target faced an increase in inventory shrink, attributed to theft and organized retail crime, which reduced profitability by more than $500 million compared to the previous year. This indicates that inventory-related losses had a significant impact on the company's operating income.
2. **Economic Concerns and Interest Rate Hikes**: The anticipation of future interest rate hikes and the release of lower-than-anticipated initial jobless claims data contributed to a decline in consumer spending, which indirectly affected Target's operating income. Higher interest rates can lead to reduced consumer spending, as evidenced by the impact on Target's stock price and investor sentiment.

In summary, Target's operating profit decline in 2023 was primarily driven by inventory shrink due to theft and organized crime, as well as the economic concerns and interest rate hikes.

|code|Ticker|Name|Date|Operating Income YoY|Operating Income|market_code|
|---|---|---|---|---|---|---|
|TGT|TGT.N|Target|2023 Q1|-45.54280670785525|1.234E9|169|
|TGT|TGT.N|Target|2023 Q2|-91.15531104528142|2.09E8|169|
|TGT|TGT.N|Target|2023 Q3|-52.91338582677165|8.97E8|169|
|TGT|TGT.N|Target|2023 Q4|-48.26720241084882|1.03E9|169|