Target’s profit fell by around 50% in its fiscal third quarter as it cleared through unwanted inventory and sales slowed heading into the holidays, prompting the company to lower its expectations for retailers’ most important time of year.
The company also said Wednesday it plans to cut up to $3 billion in total costs over the next three years, citing the need to become more efficient after two years of dramatic sales gains. The retailer’s revenue has grown by about 40% during the Covid pandemic.
Target did not specify how it will reach its savings goal, but said it does not have plans for layoffs or a hiring freeze.
The company’s shares fell more than 13% on Wednesday. The stock had closed about 4% higher Tuesday after rival Walmart posted a positive earnings report.CNBC