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Target’s Profit Sinks as It Offloads Inventory Shoppers Don’t Want



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Target posted quarterly earnings on Wednesday that were much weaker than Wall Street expected, as the retailer got rid of excess inventory that built up as shoppers shifted their buying habits. Company executives presented the actions as tough but necessary to position the retailer for a stronger performance in the rest of the year.Target’s net profit plunged to $183 million in the three months through July 30, down 90 percent from the year before. That was far below what Wall Street analysts expected, even after the company had warned in recent months that unwanted inventory would dent its earnings.Target’s comparable sales grew 2.6 percent in its latest quarter, versus the same period last year. That was slightly below analysts’ expectation of a 2.8 percent increase.The lower profit came from Target’s glut of inventory. It had $15.3 billion in inventory, a 36 …

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