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Target Earnings Beat Expectations

Retail giant Target reported a 6.3 percent drop in second-quarter profit this morning, but it still beat expectations thanks to cost-cutting.

Revenue was down 2.6 percent compared with the second quarter of last year.

Cost-cutting enabled Target to eke up its gross profit margin rate, mostly by slashing staff, freezing the salaries of senior managers and cinching up credit card writing.

Wal-Mart has sapped some of Target's business during the recession, as consumers "trade down" to cheaper products. As a result, Target said it's expanding its food sales, hoping to bring back some of the traffic from Wal-Mart.

-- Frank Ahrens
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By Frank Ahrens  |  August 18, 2009; 10:13 AM ET
Categories:  The Ticker  | Tags: Target, Wal-Mart  
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Posted by: Dermitt | August 18, 2009 11:21 AM | Report abuse

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