Target (TGT) shares are under severe pressure on Wednesday as the retailer missed analyst earnings estimates, guided lower for the full year and under-performed in the third quarter. Ahead of the crucial holiday shopping season, Target is dealing with several key challenges.

For one, it has too much inventory after lackluster third quarter sales. Second, sales in important categories such as home goods remain soft. And lastly, Target CEO Brian Cornell and his executive team's recent tone around their outlook for holiday shoppers.

Yahoo Finance Executive Editor Brian Sozzi breaks down what you need to know ahead of Wednesday's market open.

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This post was written by Luke Carberry Mogan.