Target's Profit Tumbles 13.8% in Third Quarter

Target (TGT), the Minneapolis-based discount retailer, was the latest store operator to report that results were hurt by the economy, when it posted a 24% decline in third quarter earnings.

For its third quarter, Target reported net income of $369 million, or 49 cents a share, compared with $483 million, or 56 cents a shar,e in the year-ago third quarter. The No. 2 retailer in the U.S. said it was hurt by consumers cutting back on discretionary spending and failing to make credit card payments.

Revenue increased 2% to $15.11 billion from $18.4 billion in last year's third quarter. Analysts, according to Thomson Reuters, had expected Target to weigh in with earnings of 48 cents a share and revenue of $15.24 billion.

Target also said that it plans to temporarily halt its share buyback plan and reduced its 2009 capital spending target by $1 billion to preserve cash. The company said the moves will help protect its liquidity and "strong" debt ratings.

Our third -quarter financial results reflect the significant macroeconomic challenges facing our retail and credit card segments," said Gregg Steinhafel, president and chief executive officer, in a press release. "As we look to this holiday season and 2009, our entire Target organization is focused on providing compelling reasons for our guests to shop at Target in these difficult times."