Target Reports Disappointing Earnings, Stock Plummets

Target reported disappointing third-quarter earnings, with profits missing Wall Street expectations by 20%, marking its largest shortfall in two years. The retailer's revenue of $25.67 billion slightly exceeded last year's but fell short of the estimated $25.90 billion, leading to a significant drop in share prices by nearly 18% in pre-market trading. CEO Brian Cornell cited lingering softness in discretionary spending and cost pressures related to a port strike as key factors behind the weak performance. Despite a slight increase in customer traffic and digital sales, Target revised its full-year profit outlook downward, now projecting earnings per share of $8.30 to $8.90, below earlier forecasts. Competitors like Walmart and Amazon reported stronger results, highlighting Target's struggles in a challenging retail environment marked by inflation-weary consumers. Analysts suggest that Target's recent focus on price cuts may not be enough to regain its competitive edge against larger rivals.