Target sales, profit slip in 2nd quarter

Minneapolis-based Target reports its second-quarter sales at stores open at least a year, a key measure in retail, dropped about six percent.

The retailer's profits also fell about six percent to $594 million on sales of $15 billion.

Target CEO Gregg Steinhafl told investors in a conference call he isn't happy with Target's declining sales. But he noted the retailer topped the forecasts of Wall Street analysts.

"We're very pleased with Target's second quarter financial results, which were well above expectations. Profitably within our retail segment was quite strong due to impressive gross margin performance and disciplined expense control across the enterprise. And our credit card segment generated profits in a quarter when most other card issuers have reported loses," Steinhafel said.

Target has been reducing staff, tightening up on the extension of credit to customers and freezing senior managers' salaries. It's also expanding its grocery departments, hoping to boost sales.