Macy's, Inc.

Target cuts profit, sales outlook after bumpy holiday season

Target cut its fourth-quarter profit and sales outlook after sluggish holiday traffic in its stores and weak sales in key areas like electronics and food offset a surging online business.

The holiday season was disappointing for Target and several other retailers trying to be more nimble in a changing landscape where online leader sets the rules. Macy's, Sears and others have announced store closings and layoffs.

Target said revenue in its signature categories —clothes, home, wellness and toys — increased in November and December. But electronics and entertainment were a weak spot, as well as food and essentials. Target has been struggling to find...