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.

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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.

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

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

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

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

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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.

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