The target’s profit drops as the retailer removes unwanted inventory

An overabundance of inventory drove profits down at Target Corp. further than expected, leading investors to worry about the company’s response to an oversupply problem affecting retailers from walmart Inc. to the parent company of TJ Maxx.

Target’s net profit fell 90% and operating margin fell to 1.2% in the quarter ended July 30, the company said in its quarterly report on Wednesday. The report, which came after the company forecast in June that its operating margin would shrink to around 2%, provided a new picture of the rising costs of the retailer’s efforts to quickly unload unwanted products.

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