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Business

Target’s profits drop as the retailer unloads unwanted inventory




An abundance of inventory sapped profits Goal corp. longer than expected, fueling investor concerns about the company’s response to an oversupply problem plaguing retailers from Walmart Inc. to the mother of TJ Maxx.

Target’s operating margin fell to 1.2% in the quarter ended July 30, the company said in its quarterly report Wednesday. The report, which came after the company forecast in June that its operating margin would shrink to about 2%, provided a fresh look at the rising costs of the retailer’s efforts to quickly offload unwanted products.



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