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Target shares tumbled after the retailer posted lower quarterly earnings and said it would absorb higher costs this year rather than raise its prices.
Sales at the Minneapolis-based retailer increased in the most recent quarter as shoppers spent more on food and groceries and even luggage as they prepared to travel again, but supply-chain costs and inflationary pressures cut into profits. Like Walmart Inc., its larger rival, Target reported quarterly earnings that missed Wall Street’s forecasts.
