Target (TGT) dropped 17% for the week · Invest & Retire Community

Target (TGT) dropped 17% for the week

Target Corp (TGT) shares dropped over 18% in pre-market trading on Wednesday after the retailer posted lower third-quarter profit and warned of a soft holiday period ahead.

Pre-tax earnings fell by 11.6% to $1.09 billion during the third quarter, as revenue climbed by 1.1% to $25.67 billion and gross margins fell by 0.2% to 27.2%.

Analysts had been expecting revenue of $25.90 billion, while earnings also undershot forecasts of $2.30 per share at $1.85, reflecting Target’s biggest miss in two years.

“Unique challenges” hit the business over the quarter, chief executive Brian Cornell said, including softness in discretionary categories and October’s strike among US port workers.

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