NEW YORK — Target on Wednesday reported sluggish sales and slumping profits in the fiscal third quarter as inflation-weary customers curtailed their spending on apparel and other non-essential items. The Minneapolis retailer fell short of Wall Street expectations for the quarter, and its profit and sales outlook for the final three months of the year also disappointed industry analysts. Costs related to a U.
S. dockworkers' strike in October also dragged on Target's results at a time when Americans are spending more selectively, the company said. "We encountered some unique challenges and cost pressures that impacted our bottom-line performance," Target Chairman and CEO Brian Cornell said.
The weak August through October period at Target stood in stark contrast to the third quarter of low-price rival Walmart, which reported another quarter of stellar sales Tuesday and released optimistic projections for the holiday season. Target's outlook was particularly concerning because the discount merchandiser reduced prices on more than 2,000 products for the holidays and rolled out a Thanksgiving dinner deal that put the cost of the holiday meal below last year's total. Target's shares plummeted more than 21% in afternoon trading Wednesday, while Walmart's share rose nearly 3%, closing at $86.
60 on Tuesday. The disappointing quarter at Target may have reflected the financial circumstances and mood of U.S.
consumers in the months before Election Day. Even as the overall inflation rat.