Target 1Q profit drops nearly 8 percent

New York (AP) — Target said it first quarter profit dropped almost 8 percent due to higher costs and softer-than-expected sales. The company still beat Wall Street earnings estimates. The Minneapolis-based retailer said Tuesday its net income fell to $602 million, or 74 cents per share, in the three months ended May 3 from $651 million, or 75 cents per share, in the prior year.

Thomson Financial says analysts expected 71 cents per share. The estimates typically exclude one-time items.

Target says its revenue rose 5 percent to $14.80 billion from $14.04 billion. Analysts predicted $14.92 billion.

Sales at established stores have fallen 0.7 percent.