Target’s Profit Tops Analysts’ Estimates on Cost Reductions

Target Corp., the second-largest U.S. discount retailer, posted second-quarter profit that surpassed analysts’ estimates as cost reductions helped offset sales of lower-margin goods.

Net income increased to $704 million, or $1.03 a share, from $679 million, or 92 cents, a year earlier, the Minneapolis-based company said today in a statement. Analysts projected 97 cents, the average of 19 estimates compiled by Bloomberg. Revenue increased 4.6 percent to $16.2 billion.