Target Sales Disappoint

Target reports in-line profit, but sales miss forecasts.
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NEW YORK (

TheStreet

) --

Target

(TGT) - Get Report

reported a 14% increase in second-quarter earnings despite disappointing sales.

During the quarter, Target earned $679 million, or 92 cents a share, compared with $594 million, or 79 cents, for the discounter in the year-ago period.

Target's total revenue, which includes credit card revenue, increased 3.1% to $15.32 billion. It's retail sales jumped 3.8% to $15.13 billion, while same-store sales inched up 1.7%, below company's forecast for an increase of 2% to 4%.

Target, however, did note strength in its apparel business.

Analysts were calling for a profit of 92 cents on revenue of $15.62 billion.

Shares of Target are slipping 2.6% to $49.61 in pre-market trading.

On Tuesday, rival

Wal-Mart

(WMT) - Get Report

reported a 1.8% drop in U.S. same-store sales.

-- Reported by Jeanine Poggi in New York.

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