Target Corp. shares were suffering their biggest-ever price drop in active trade Tuesday, as the discount retail giant struggles to cope with the “rapidly changing” behavior of consumers.
Target reported before the open bell fiscal fourth-quarter profit that missed expectations, and provided first-quarter and full-year guidance that was well below analyst projections. The company said that investments it would make as it transitions to a new financial model will weigh on results in the short term.
That drove the stock
down $8.25, or 12.3%, in morning trade, to the lowest price seen since Aug. 20, 2014. Recent volume of over 21 million shares was already more than triple the full-day average.
The selloff was on track to be the biggest one-day price decline since Target went public in January 2014. The second-biggest price drop was $5.61 on May 18, 2016, also after reporting quarterly results.