Target reported a 13 percent drop in second-quarter profits Wednesday. The accounting is for the quarter that ended on Aug. 3.
The Associated Press reports that the Minneapolis-based company is the latest in a string of retailers, including rival Wal-Mart, that have lowered business expectations as they face an uncertain economy.
"Target's second quarter financial results benefited from disciplined execution of our strategy and strong expense control, offsetting softer-than-expected sales," according to Chairman and Chief Executive Gregg Steinhafel, who was quoted in the Journal.
Target says it earned $611 million, or 95 cents per share. That compares with $704 million, or $1.06 per share, a year earlier. Analysts were expecting earnings of 96 cents per share on revenue of $17.28 billion, according to FactSet.
Target has worked to build its customer base by offering a larger selection of food and giving shoppers a 5 percent discount when they pay with Target-branded credit and debit cards. Next month, Target is set to launch its latest limited-time designer collaboration, this time with Phillip Lim.