Inflation smacked Target Corp. over the past three months, leading to a profit drop that surprised investors and triggered a huge selloff of its stock.
The Minneapolis-based retailer dealt both with higher costs from supply chain issues and reduced discretionary spending on certain items like furniture as customers faced higher living costs.
Target shares fell 25% after it announced that its profit for February, March and April was cut in half, well below analysts' expectations. The share plunge the second-biggest single-day loss of value in the company's history, surpassed only by a 33% drop on the Black Monday stock market crash in October 1987.
