Earnings Slip at Target

Target (TGT Quote) said its fourth-quarter earnings slumped 8% from the same period of the prior year, but its per-share profit still came in a penny ahead of what analysts expected.

Revenue for the quarter edged up 0.8% to $19.87 billion. However, that was around $100 million short of Wall Street's consensus forecast of $20 billion. On the bottom line, Target earned $1.03 billion, or $1.23 a share, in the fourth quarter, down from $1.12 billion and $1.29 a share the previous year.

For the fiscal year, Target's earnings rose to $2.85 billion from $2.79 billion. Sales increased 6.5% to $63.37 billion.

"Our financial performance in 2007 fell short of our expectations as the pace of sales and earnings slowed considerably in the second half of the year," said Bob Ulrich, chairman and chief executive, in a press release. "As we enter 2008, we remain keenly focused on the disciplined execution of our core strategy, positioning Target to deliver improved financial results, even in the face of continued challenges in the current economic environment."

Shares of Target were gaining 30 cents to $53.55 in premarket trading Tuesday.