Target also missed estimates for comparable sales as American shoppers reined in spending on discretionary goods amid high inflation, even with aggressive discounts on apparel, electronics and home goods.
The dismal results from Target highlighted weak consumer spending, and a host of other U.S. retailers have issued profit warnings in recent weeks.
American consumers have been squeezed by higher prices for everything from toothpaste to gas, which has led to cutbacks in spending on non-essential items.
Target is prone to bigger hits during tougher times, as it relies more on discretionary categories, while its rivals such as Walmart, which devotes more shelf space to groceries and packaged food items.
Target's weak results come a day after Walmart beat profit estimates as its core base of shoppers sought bargains on groceries.
Shares of Walmart rose again on Wednesday after jumping 5% in the previous session. Target shares were down more than 3 percent at midday.
