$TGT Target reported second quarter results today:

Revenue of 26bn, up 3% YoY.

GM was 21.5% vs 30% last year.

Operating income of 321M, down 87%.

Op Inc Margin was 1.2% vs 9.8% last year

Guidance 2022: Low-mid single digit growth with an op margin of about 6% in 2H

"This year's gross margin rate reflected higher markdown rates, driven primarily by inventory

impairments and actions taken to address lower-than-expected sales in discretionary categories"

Target is kind of an extreme example of 'Inflation Loves Eating Margins'.

FCF was negative this Q with Exp in Prop and Eq doubling.

Here's an exctract from '100 Baggers', which is in turn an extract from the 1983 Warren Buffet Shareholder letter on this point: