Target reported on Wednesday that its profit dropped by 90% for Q2.

Target still believes that temporary suffering will result in long-term gain.

The price of Target stock increased by 22% in the month before the company's earnings.

In early trade, Target's stock dropped more than 3%.

Nevertheless, inventory remained high; it was $15.32 billion at the end of Q2 instead of $15.08 billion at the end of the first.

Additionally, Target predicted that its operating margin rate would be 6% in the second half of the year.

By comparison, its operating margin rate for Q2 was 1.2%, so that it would be an increase.

The business's net income for the second quarter decreased to $183 million.

Due in part to higher pricing brought on by inflation, total revenue increased to $26.04 billion.

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However, the size of the earnings shortfall and the reiteration of full-year sales guidance may have contributed to a negative perception of the company.