Target Corp.’s cautious outlook on the crucial holiday season overshadowed progress the retailer made in bringing more customers to its stores, and its stock fell more than 9% on Wednesday morning. Other retailers’ stocks fell too, even though overall economic figures show people still spending.
Target reported higher customer traffic numbers and better sales at established stores as its investments in improving its stores and online capabilities appear to be paying off. But those changes, as well as its moves to cut prices and raise employee wages, are dragging down profits.
The discount chain reported a 21% drop in fiscal third-quarter profit.
Seeking to soothe...