Target Corp.’s profit fell further than the retailer anticipated as it worked to unload excess inventory, executives said, revealing the cost of the company’s effort to quickly sell goods at a discount.
Operating margin declined to 1.2% in the quarter ended July 30, Target said in its quarterly earnings report Wednesday. In June the company predicted it would shrink to roughly 2% for the period as it rapidly worked through a glut of inventory. The company cited a swift reversal of buying behavior, with shoppers cutting spending on discretionary items as inflation pressured their spending and product shipments arrived late.
