Target says it's cutting prices to reduce inventory glut
Target Corp. TGT, -0.85% shares slid 8.2% in Tuesday premarket trading after it announced a plan to reduce its inventory and revised its operating margin guidance. The plan includes canceling orders, markdowns, and removing inventory; price hikes to offset higher fuel and transportation costs; and increased holding capacity at the ports and other supply chain adjustments.
"Since we reported our first quarter results, we have continued to monitor external conditions and have determined the necessary actions to remain nimble in the current environment," said Chief Executive Brian Cornell in a statement.
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