Target's 1Q profit falls short as it continues transition

NEW YORK (AP) — Target, which is pushing through a costly period of transition, posted weaker-than-expected profits for the first quarter.

While traffic growth in stores reached levels not seen in a decade and comparable-store sales jumped a solid 3 percent, those bright spots were overshadowed by the profit numbers.

Shares tumbled 7 percent before the opening bell Wednesday.

Like other retailers, Target is reinventing itself, attempting to become more nimble in the age of Amazon. The Minneapolis discounter is re-investing more than $7 billion into the company through 2020, updating stores and opening smaller locations in urban markets.