NEW YORK — In the third quarter, Target managed to achieve a modest increase in sales, but its profits took a hit as inflation-conscious consumers reduced their expenditures. The financial strain was exacerbated by additional costs associated with an October dockworker strike, negatively affecting the company’s overall performance.
The Minneapolis-based retailer did not meet the expectations set by Wall Street for this quarter, and its forecast for the final three months of the year also fell short of what industry experts had anticipated. This reflects a broader trend where while consumers are still making purchases, they are being increasingly discerning about their spending habits.
In comparison, Target’s results are markedly different from those of its competitor, Walmart, which reported yet another impressive sales quarter and shared positive outlooks for the upcoming holiday shopping season.
As a result of these disappointing figures, Target’s stock saw a significant drop of 14% in pre-market trading on Wednesday.
