By Savyata Mishra

(Reuters) -Target forecast holiday-quarter comparable sales and profit below estimates on Wednesday as value-conscious consumers shopped for low-priced essentials at rival retailers including Walmart, sending its shares down 18% in premarket trading.

The U.S. retailer now expects flat comparable sales in the fourth quarter and a profit of $1.85 to $2.45 per share. Analysts on average had expected a 1.64% rise in sales and profit of $2.66 per share.

The Minneapolis-based company has cut prices on thousands of essential and gift items ahead of the holiday season. It is also offering discounts on food, beverages and toys, while expanding its private-label brand, dealworthy, to include items such as smartphone chargers and toiletries.

Still, those efforts have so far failed to attract shoppers to its stores.

Apparel sales were soft as warmer-than-usual weather across the U.S. deterred spending on winter clothing, although spending on essentials and beauty was strong during the quarter.

The results are in contrast to the world's no. 1 retailer Walmart, which raised its annual sales and profit forecast for the third consecutive time a day earlier, as it took market share in groceries and merchandise.

"Things have taken a turn (for Target) in Q3. And it seems that the softness is going to linger into the holiday season as well," CFRA analyst Arun Sundaram said.

"Clearly, it's Walmart that's executing better and Target is really missing the mark," Sundaram said.

Lingering weakness in higher-margin categories such as home decor, electronics and furniture has hurt Target this year, as shoppers watch their budgets in the face of still-high inflation.

"We are seeing the consumer become increasingly resourceful and strategic on how they shop," Rick Gomez, Target's chief commercial officer, said on a media call.

Meanwhile, the company's efforts to pull forward holiday inventory in preparation for the U.S. ports strike led to additional costs in its supply chain, Target's executives said.

U.S. dock workers and port operators went on a three-day strike in early October that shut down shipping on the East Coast and Gulf Coast ahead of the crucial holiday season, sending retailers scrambling to reroute shipments.

Target executives said the company "acted quickly and decisively to reroute select shipments to protect the key fourth quarter seasonal programs, that came with additional cost" which hurt its profit in the reported quarter.

With five fewer holiday shopping days between Thanksgiving and Christmas in what is expected to be a so-so holiday season, retailers such as Target face competition as promotions at Walmart and Amazon.com kicked off earlier than usual.