Target profits fall, but better than Wall Street

Target Corp (TGT.N) reported its eighth consecutive drop in quarterly profit, but the results were better than Wall Street had expected as the No 2 U.S. discount retailer cut costs and stocked less merchandise.

Target said profit was $594 million, or 79 cents per share, for its second quarter ended August 1, compared with $634 million, or 82 cents per share, a year earlier.

Analysts, on average, had been expecting it to earn 66 cents per share, according to Reuters Estimates.

Sales fell 2.7 percent to $14.6 billion, while sales at stores open at least a year, a key retail gauge known as same-store sales, fell 6.2 percent.

Shares rose to $43.60 in premarket trading on Tuesday after closing at $41.38 on the New York Stock Exchange on Monday.

Source: Reuters