Shares of Target Corp. TGT slipped 0.4% in premarket trading Wednesday, after the discount retailer reported fiscal first-quarter profit and sales that beat expectations and reiterated its full-year outlook, while providing a downbeat second-quarter profit view due to “softening sales trends.” Net income for the quarter to April 29 fell to $950 million, or $2.05 a share, from $1.01 billion, or $2.16 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.05 beat the FactSet consensus of $1.77. Total revenue increased 0.6% to $25.32 billion, above the FactSet consensus of $25.26 billion. Same-store sales grew 0.7% to exceed the FactSet consensus for a 0.2% rise, as traffic rose 0.9%. “[W]e now expect shrink will reduce this year’s profitability by more than $500 million compared with last year,” said Chief Executive Officer Brian Cornell. “While there are many potential sources of inventory shrink, theft and organized retail crime are increasingly important drivers of the issue. Looking ahead, the company expects second quarter adjusted EPS of $1.30 to $1.70, below the current FactSet consensus of $1.95, and reiterated its full-year adjusted EPS guidance of $7.75 to $8.75. The stock has gained 5.3% year to date through Tuesday, while the S&P 500 SPX has advanced 7.0%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit for more information on this news.