UPDATE: Target Lowers Full-Year Earnings Outlook, Shares Slip

Shares of Target

dropped more than 1.6% in pre-market trading after the company cut its forecast for the year and reported a drop in its second-quarter earnings. For the year, the company now projects earnings of $3.10 to $3.30 per share, versus its earlier forecast of $3.60 to $3.90 per share. It also expects Q3 earnings of $0.40 to $0.50 per share, versus analysts' estimates of $0.66 per share. The Minneapolis, Minnesota-based company posted quarterly earnings of $234 million, or $0.37 per share, compared to $611 million, or $0.95 per share, in the year-ago period. Excluding certain items, Target's earnings fell to $0.78 per share from $0.98 per share. Its sales rose 1.7% to $17.41 billion. However, analysts were expecting earnings of $0.79 per share on revenue of $17.38 billion. Transactions slipped 1.3% in the quarter, while sales at stores open for at least a year came in flat in the quarter. "While results from the quarter didn't meet our expectations, we are seeing some early signs of progress as we work to improve results in the U.S. and Canada,” said John Mulligan, executive vice president and chief financial officer of Target. Target shares dropped 1.65% to $58.27 in pre-market trading.