Target Corp experiences decrease of 1Q profits

Target Corporation (NYSE: TGT), an American retailing company, reported decrease of first-quarter profits due to some stagnation in discretionary spending among consumers.

The company’s first-quarter profit constituted $602 million, or 74 cents per share, compared to $651 million, or 75 cents per share, the previous year.

Retail-segment sales went up 5 percent, to $14.3 billion, though profits before expenses and income taxes swooped 2.2 percent, to $959 million, from $980 million the previous year.

Credit card revenue increased 20 percent to $500 million, but that division's earnings were down more than 9 percent to $199 million.

Target Corporation is the fifth largest retailer by sales revenue in the United States behind Wal-Mart, The Home Depot, Kroger and Costco. The company is ranked 31st on the 2008 Fortune 500. Target operates its retailing business exclusively in the United States . It is a rival and competitor of Kmart and Wal-Mart.