NEW YORK — Target Corp. cut its profit forecast and a key sales outlook Wednesday as it saw fewer customers in its stores and acknowledged it didn't push the second part of its "Expect More, Pay Less" slogan.
The Minneapolis-based discounter's second-quarter net income fell nearly 10 percent, though that was better than what most had expected. Sales at stores open at least a year fell 1.1 percent, reversing seven straight quarters of gains.
Target's shares fell nearly 7 percent in morning trading.
Customer traffic fell for the first time in a year and a half. The company attributed that to it falling short on the "Pay Less" position, turning off shoppers looking for essentials like detergent or basic T-shirts. Target also cited issues in the quarter that were both company-specific and industrywide. They ranged from a lack of new products in its electronics area to disappointing business in perishables like fruits and vegetables and disruptions caused by its sale of its pharmacy business to CVS. The deal was completed in December of 2015.
Target also saw a wide variability in sales by markets, noting weakness on the East Coast but pockets of strength in parts of California.
"Our No. 1 focus is driving traffic back to our stores and accelerating business to our site," Chief Executive Brian Cornell told analysts on a conference call.
Read Thursday's Arkansas Democrat-Gazette for full details.