NEW YORK (AP) — Target’s third-quarter profit tumbled as the retailer struggles to lure shoppers that are being pressed by stubbornly high inflation.
The Minneapolis company said Wednesday that it expects its sales slump to extend through the critical holiday shopping season. The company also announced that it’s planning to invest another billion dollars next year to remodel stores and build new ones, increasing the total cost for the makeover to $5 billion.
Investors have punished Target’s stock recently, sending it down 43% over the past year. Shares edged lower before the opening bell.
Turning around the 19% profit slide in the most recent quarter is the latest challenge to incoming CEO Michael Fiddelke, a 20-year company veteran who is replacing CEO Brian Cornell on Feb. 1. The handover arrives as the retailer tries to reverse a persistent sales malaise and to revive its reputation as the place to go for affordable but stylish products.
Target’s troubles stand in stark contrast to rival Walmart, the nation’s largest retailer, which is thriving. Walmart reports on it’s most recent quarterly performance Thursday.
