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Target Corporation's stock price plunged Wednesday morning following first quarter results showing profitability down 52% compared to the same period last year. 

Brian Cornell, CEO of the Minneapolis-based retailer, said unexpectedly high costs related to freight, supply chain disruptions, increased salaries and wages, and reduced customer spending on big ticket items drove the profitability decline despite ongoing sales growth and a rise in customer traffic. 

On Wednesday, Cornell told investors the company did not anticipate the rapid shifts experienced in the last 60 days, such as transportation costs soaring to all-time highs. 

Nor did Cornell anticipate the "magnitude" of the consumer shift in discretionary spending, with inflation-hit households cutting their spending on big ticket items including indoor and outdoor furniture, TVs, and kitchen appliances.

Spending on household essentials continues to drive Target's sales growth. Total revenue grew 4% compared to 1Q results in 2021, according to the company's earnings release.

Target reported net earnings in the first quarter of $1.009 billion compared to $2.097 billion last year. 

Target's stock closed Tuesday at $215 per share. By late Wednesday morning, the company's stock price had fallen to $160. 

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