Target’s Profit Slide Hints at Meager Holiday Season for Retailer

Target’s third-quarter profit tumbled as the retailer struggles to lure shoppers who are being pressed by stubbornly high inflation and facing increasing competition, Anne D’Innocenzio reported for the Associated Press (AP).

Turning around Target's 19% profit slide in the most recent quarter is the latest challenge for incoming CEO Michael Fiddelke. (Photo: Target Facebook)

The Minneapolis company said recently that it expects its sales slump to extend through the critical holiday shopping season.

The company also announced that it plans to invest another billion dollars next year to remodel stores and build new ones, bringing the total cost of 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 for incoming CEO Michael Fiddelke, a 20-year company veteran who is replacing CEO Brian Cornell on Feb. 1.

The handover comes as the retailer tries to reverse a persistent sales malaise and revive its reputation as the destination 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 its most recent quarterly performance Thursday.