Target shares plummeted Tuesday after the retailer decreased its profit margin outlook for the second time in three weeks, introducing a plan to cut prices to move inventory that's been piling up and focus on categories that are seeing stronger consumer demand. 

"Since we reported our first-quarter results, we have continued to monitor external conditions and have determined the necessary actions to remain nimble in the current environment," Brian Cornell, Target's CEO, said in a statement. 

Shares plunged as much as 7.8% during the regular session to $147.15, the lowest price since September 2020. The stock rebounded to 2.6%. 

Target said it will take measures in the second quarter; including steps to make additional markdowns, get rid of excess inventory, and cancel orders. The firm is also adding capacity near US ports to hold merchandise in response to supply chain volatility in addition to adjusting its pricing to solve the unusually high transportation and fuel costs dilemma. 

Target’s projection of its second-quarter operating margin rate will be in a range of around 2%. On May 18, it said it had expected an operating income margin rate in a wide range centered around 5.3%. Target shares tumbled following the release of its first-quarter earnings last month that missed expectations.

The firm said it's planning for "continued strength" in categories like food & beverage, household essentials, and beauty. 

Target said for the back half of  2022, it now expects an operating margin rate in the range of around 6%, a rate that would exceed its average fall season performance in the years leading up to the COVID-19 pandemic. 

"While these decisions will result in additional costs in the second quarter, we're confident this rapid response will pay off for our business and our shareholders over time, resulting in improved profitability in the second half of the year and beyond," said Cornell.