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Investors were punishing Target Corporation on Wednesday after third quarter results failed to match expectations.
The company had touted lowered costs on thousands of goods and very early holiday sales but that failed to drive a large increase in customer traffic to its stores.
Sales fell in the quarter and the large retailer lowered guidance for the fourth quarter, meaning it doesn’t expect holiday sales to match previous estimates.
The retailer began hiring 100,000 seasonal workers in October. Target also announced it will offer deals through the entire holiday shopping season.
The company says operating income decreased by 11.2% year-over-year in the quarter.
Target’s stock was down more than 20% on Wednesday, erasing all of this year’s gains.
For the fourth quarter, Target expects flat comparable sales and projected earnings per share in a range of $1.85 to $2.45.
Target claims it remains confident in its long-term financial goals, citing strong fundamentals.
Rival Walmart has a much more positive earnings report this week, showing strong sales and expectations of continued growth.
Target did have some good news. It reported its growth in same-day delivery services was up by 10.8%.
The company saw 2.4% in digital growth, according to its earnings report. Target’s paid membership program, Target Circle 360, was launched in April.
Total revenue rose 1.1% to $25.7 billion.
A former Target executive has warned that America’s biggest retailers, like Target, Walmart and BJs Wholesale Club will face “massive upheaval” in the wake of Donald Trump’s proposed tariffs on imported goods.
