© AP
Target said it was “planning cautiously” for the remainder of the year after the US retailer’s efforts to offer discounts to customers and move inventory prompted a larger than forecast drop in second-quarter profit.
The company spooked investors in June when it announced its second profit warning in less than a month and said it would need to cancel orders and offer greater discounts to shoppers hit by high inflation.
Target cut its forecast for second-quarter operating margin to 2 per cent from 5.3 per cent. On Wednesday, it reported an even weaker margin of 1.2 per cent as it worked to reduce excess inventory and cited higher freight and transportation costs.
Chief executive Brian Cornell said Target was facing a “very challenging environment” and emphasised working on delivering inventory “right sizing goals” announced in June.
“While these inventory actions put significant pressure on our near-term…
