Target stock falls 21% as big discounting effort falls short
Target blamed slower-than-expected demand for its profits on Wednesday, which were far below Wall Street's projections.
The company reported 20% lower-than-expected profits, the largest shortfall in two years. Meanwhile, for the first time in almost a year, revenues fell short of projections.
As a result, Target's shares dropped more than 21% on Wednesday.
Despite a much-publicized drive to reduce thousands of items and a pushed-up holiday sale, the disappointing results were still obtained.
Target CEO Brian Cornell blamed the poor quarter on the costs of getting ready for the short-lived October port strike and persistent slowness in discretionary categories during a call with reporters.
Michael Fiddelke, the chief operating officer of Target, adding that it was sad that after boosting ou...