Target warns of a weak holiday season. Shares are tumbling

Target’s profit plunged 52% in the third quarter and the retailer warned of a sluggish holiday.

Target blamed inflation and a deteriorating economic outlook for its miserable quarter — and also lowered its outlook for the rest of the year. That sent shares down more than 12% in premarket trading.

CEO Brian Cornell said that in recent weeks that “sales and profit trends softened meaningfully, 

with guests’ shopping behavior increasingly impacted by inflation, rising interest rates and economic uncertainty.”

Still, it wasn’t all bleak: Sales of necessities were strong, including food and house essentials.

Similar to Walmart, Target said sales in “discretionary categories” like electronics and clothing hampered its

Target (TGT) plans to reduce costs by $3 billion over the next three years in an effort to “simplify and gain efficiencies across its business with a focus on reducing complexities and lowering costs,” it said.