Target Corp. cut its profit outlook for the second time in three weeks as it rushes to ease an inventory surge by marking down items and canceling orders.

Soaring merchandise stockpiles and "unusually high transportation and fuel costs" prompted Target to cut its outlook for operating profit to about 2 percent of sales this quarter. On May 18, the company had projected the gauge would be in a wide range around 5.3 percent.

The rapidly worsening outlook underscores Target's struggle to adjust to rapid shifts in demand amid stubborn inflation that's forced consumer spending into less-profitable staple goods and away from discretionary categories such as electronics and home products. That's left retail companies with a whole lot of merchandise that shoppers don't want.

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