Target shares fell Wednesday, as the big-box retailer opted to emphasize its focus on value as prices of groceries, fuel and other goods rise.
Shares were down about 4% in premarket trading, despite beating earnings expectations for the fiscal third quarter.
Target CEO Brian Cornell said on a call with reporters that the company is absorbing some of the higher costs it’s seeing, rather than passing it on to customers. That strategy could squeeze margins.
“We are protecting prices,” he said. “It’s as important to our guests this year as safety has been throughout the pandemic.”
Target topped analysts’ predictions as sales jumped 13% after shoppers bought Halloween…