By UBS News Staff | Nov. 20, 2024

Target’s stock dropped over 20% on Wednesday, marking its largest earnings miss in two years. The retailer reported third-quarter earnings of $1.85 per share, falling short of analysts’ expectations of $2.30. Revenue also missed, coming in at $25.67 billion versus $25.90 billion expected.

Despite significant price cuts on thousands of items, Target struggled to drive sales, with comparable sales rising only 0.3%. The company also cut its full-year earnings guidance, citing weaker discretionary spending and rising costs from supply chain challenges.

The disappointing results contrast sharply with Walmart, which exceeded Wall Street expectations earlier this week. Target’s CEO Brian Cornell acknowledged “lingering softness” in key categories but expressed confidence in the company’s long-term strategy.

Target shares hit a 52-week low during the day, reflecting the retailer’s ongoing challenges amid heightened competition and cautious consumer spending.