Updated from 9:03 a.m. EDTThe shortfall on Target's ( TGT) bottom line in the first quarter was "the direct result of softer than planned sales," the retailer's CFO said on a conference call Thursday. But the company also saw a rise in credit card expenses, which jumped 27.4% to $210 million year over year. The biggest part of that increase was the company's provision for bad debt, which increased from $89 million in the year-ago quarter to $130 million in the just-completed quarter. Target's earnings were virtually unchanged from a year ago, as a jump in operating expenses offset a 7.6% rise in revenue. The retailer earned $349 million, or 38 cents a share, on revenue of $10.32 billion in its quarter ended May 3. In the year-ago quarter, Target earned $345 million, or 38 cents a share, on $9.60 billion in revenue. Analysts were forecasting earnings of 39 cents and revenue of $10.43 billion in the latest quarter, according to Thomson First Call. In addition to missing analysts' forecasts, the results didn't meet Target's own expectations, said Doug Scovanner, Target's chief financial officer, on a conference call. Target had not released its first quarter expectations, but Scovanner's comments echoed the company's warning in April that its results were coming in below plan. Still, he added, "We are pleased with our first quarter performance." Analysts are expecting Target to post profits of 42 cents a share in its second quarter. While that target is "clearly within reach," Scovanner warned that it was above the company's internal plan. However, Scovanner said analysts' expectations of yearly earnings of $2.03 a share are "in-line" with Target's projections. The company's same-store sales fell 0.1% in the quarter from a year ago. Same-store store sales compare results at like outlets open for more than one year. The company''s overall sales increase was due in part to a growth in square footage of 8% year over year. At the end of the quarter, Target had 1,494 stores spread among its Target, Mervyn's and Marshall Fields divisions, up 6% from a year earlier. Target's gross profit margin, which represents the difference between what a company charges for its goods and what it pays for them, declined slightly as a percentage of retail sales in the quarter. Compared with the same period a year ago, gross margin was down just 4 basis points to 32.24% of retail sales, which excludes the company's credit card revenues.