Target may have hit rock bottom

New York
 — 

Target’s problems are intensifying.

In the latest signal of trouble at Target, the company posted a drop in sales during its latest quarter and cut its full-year profit guidance Wednesday.

Fewer customers visited stores during Target’s most recent quarter, and they spent less when they shopped. It’s part of a years-long slump at Target.

The company has suffered from stiff competition from Walmart and Amazon, cluttered stores, and mistakes on prices and merchandise. Shoppers, strained by inflation, have shifted their spending to essentials and value items. Fewer customers believe they can find the best deals at Target.

The company has also faced intense customer backlash for its retreat on some diversity initiatives.

Earlier this year, the company ended some of its DEI programs. The decision angered supporters of diversity and inclusion policies, who felt blindsided by Target. Customers online protested Target’s decision, and Target acknowledged its move hurt its sales.

Target is hoping a new CEO can spark a turnaround.

In August, Target CEO Brian Cornell announced he was stepping down after 11 years at the retailer. Some industry analysts believed Target should bring in an outside voice to lead the company, but it opted for an internal candidate. Cornell will be replaced next year by Michael Fiddelke, Target’s current chief operating officer.

Target’s stock slipped 1% during pre-market trading Wednesday. Shares have tumbled roughly 35% this year.

This is a breaking news story and will be updated.