Target warns on full year profits

Target warned of weak annual sales and profits yesterday as US shoppers remain cautious and its new Canadian stores are not doing as well as anticipated. Target said this year’s profit should come in at the low end of already reduced expectations and that sales at stores open at least a year should grow just one per cent rather than two to 2.5 per cent, as US shoppers remain cautious in the face of household budget pressures such as higher taxes and gas prices.