Target’s stock surges as lower markdowns and shrink costs fueled big profit beat

Shares of Target Corp. shot up toward an 11-month high Tuesday, after the discount retailer reported fiscal fourth-quarter profit that was well above expectations, as lower markdowns and lower shrink costs boosted margins. The company said maintaining “appropriate inventory levels” helped increase profitability, as it resulted in lower markdown rates, stronger in-stock measures and reduced inventory-related costs.The stock TGT, -3.09%surged 8.5% in premarket trading, which puts it on