By Dean Seal

 

Shares of Target Corp. fell 26% to a 52-week low of $159 in early trading Wednesday after the retail giant posted a quarterly profit well below what Wall Street analysts had expected.

The Minneapolis-based company reported a drop in net income to $1.01 billion, or $2.16 a share, for the quarter ended April 30 from $2.1 billion, or $4.17 a share, in the same period last year.

Adjusted earnings were $2.19 a share, below the forecast of $3.07 a share from analysts polled by FactSet.

The retailer said inventory impairments led to higher markdowns, while freight costs and supply chain disruptions weighed on profit. Compensation and headcount at is distribution centers also rose, it said.

 

Write to Dean Seal at dean.seal@wsj.com

 

(END) Dow Jones Newswires

May 18, 2022 10:08 ET (14:08 GMT)

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