Target takes a hit after heavy discounts to clear inventory

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Target takes a hit after heavy discounts to clear inventory
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Target reported solid sales for the fiscal second quarter but its profit plunged nearly 90% after it was forced to slash prices to clear unwanted inventories of clothing, home goods and electronics.

A worker collects shopping carts in the parking lot of a Target store on June 9, 2021, in Highlands Ranch, Colorad. Target reported solid sales for the fiscal second quarter of 2022, but its profits plunged nearly 90% because it slashed prices to clear inventories of clothing, home goods and other discretionary items.

Store comparable sales increased 1.3% on top of 8.7% growth last year. Online sales rose 9% following growth of 9.9% last year. The company is planning cautiously for the remainder of the year, Cornell said, including the critical holiday season. That will put a greater focus on stocking groceries and things like cosmetics.

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