Target's 1Q profit drops 26 pct on weak sales
By ANNE D'INNOCENZIO
AP Retail Writer
NEW YORK (AP) -- Target Corp. is reporting a 26 percent drop in first-quarter profits as cool temperatures and financial pressures limited customers' appetite for spending.
The company, based in Minneapolis, also cut its annual profit outlook.
Target says that it earned $498 million, or 77 cents per share, for the three months ended May 4. That compares with $697 million, or $1.04 per share, a year earlier.
Sales rose 1 percent to $16.71 billion.
Revenue at stores open at least a year slipped 0.6 percent. That's considered an important measure of retail performance because it strips out the effect of stores that open or close during the year.
Analysts had expected earnings of 95 cents per share on revenue of $16.82 billion.
Target's stock dropped nearly 2 percent, to $69.98 in premarket trading.
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