Target suffers from lower sales
Target Corp. said profit fell for the fourth straight quarter after consumers cut purchases of its most profitable clothing and home goods.
Second-quarter net income declined 7.6% to $634 million, or 82 cents a share. The profit beat analysts’ estimates by 6 cents because the Minneapolis-based company reined in costs.
Sales at stores open more than a year dropped for the second quarter in a row, signaling that Target isn’t keeping pace with Wal-Mart Stores Inc. while the slumping economy drives consumers to discounters. Wal-Mart said last week that tax-rebate checks helped drive so-called same-store sales up 4.5% in the quarter.
Target shares fell 33 cents to $49.72.