Target cites economy for 1Q EPS drop

MINNEAPOLIS Target has reported net earnings of $602 million for the first quarter ended May 3, compared with $651 million in the first quarter ended May 5, 2007. Earnings per share in the first quarter decreased 1.4 % to 74 cents from 75 cents in the same period a year ago. All earnings per share figures refer to diluted earnings per share.

"Our first quarter earnings per share met our expectations despite softer-than-expected sales performance,” said Gregg Steinhafel, president and ceo. “Though the current economic environment remains challenging, we will continue to generate long-term value for our shareholders by remaining focused on the disciplined execution of our strategy."

In Target's retail segment, sales grew 5% in the first quarter to $14.3 billion in 2008 from $13.6 billion in 2007, due to the contribution from new store expansion partially offset by a 0.7% decline in comparable-store sales.