Target Q2 profit rises 14.3%, revenue misses

Minneapolis Target Corp. reported Wednesday that net income for the quarter ended July 31 rose 14.3% to $679 million, compared with $594 million in the year-ago period.

Cost-cutting offset weaker-than-expected revenue, which reached $15.53 billion, up 3.1%. Analysts expected revenue of $15.62 billion.

Same-store sales edged up 1.7%.

"Our retail segment generated strong profitability, overcoming softer-than-expected sales," Gregg Steinhafel, Target's chairman, president and CEO, said in a statement. "Regardless of the pace of recovery, we are well-positioned to continue to gain profitable market share."

Earlier Target said it plans to drive business into its stores this fall with a 5% discount for customers who pay with Target credit cards. The retailer also said it hopes to attract customers by emphasizing food at its general merchandise stores.