The nationwide retailer revealed that profits fell 50% in the third fiscal quarter as sales diminished ahead of the holiday season. Target announced earnings per share of $1.54, missing analyst expectations of $2.13, according to the company’s earnings report, which cited persistent inflation and rising interest rates as contributing factors for the lackluster results.
Target CEO Brian Cornell remarked in an earnings call that organized criminal behavior has negatively impacted earnings and required new levels of security spending. “Along with other retailers, we’ve seen a significant increase in theft and organized retail crime across our business,” he said. “As a result, we’re making significant investments in training and technology