Company saw strong response to promotions in Q3, CEO says
Target faces persistent weakness in larger nonessential items
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Target shares plunge 20, on track for worst day since May 2022

Nov 20 Reuters Target forecast holidayquarter comparable sales and profit below estimates on Wednesday as valueconscious consumers shopped for lowpriced essentials at rival retailers including Walmart, sending its shares tumbling nearly 20.

The results are in contrast to the world39;s no. 1 retailer Walmart, which raised its annual sales and profit forecast for the third consecutive time a day earlier, as it took marketshare in groceries and merchandise.

Minneapolisbased Target now expects flat comparable sales in the fourth quarter and a profit of 1.85 to 2.45 per share. Analysts on average had expected a 1.64 rise in sales and profit of 2.66 per share.

The U.S. retailer has cut prices on thousands of essential and gift items ahead of the holiday season. It is also offering discounts on food, beverages and toys, while expanding its privatelabel brand, dealworthy, to include items such as smartphone chargers and toiletries.

Still, those efforts have so far failed to attract shoppers to its stores as customers were willing to wait for deals and hunted multiple retailers to find them.

We39;re seeing a strong response to promotions than we39;ve seen in some time yet, Target CEO Brian Cornell said on a postearnings call.

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