Retailer Target Corp. (NYSE: TGT) joined the earnings parade this morning when it reported its first quarter numbers. Despite a 7.5% drop in net income, the company was still able to come in above Wall Street estimates.

Going into today's earnings report, analysts had been looking for earnings for the quarter of 71 cents per share, and the company actually was able to post earnings of 74 cents a share, on net income of $602 million. During the same period last year, the company was able to show net income of $651 million.

Revenues came in slightly under analyst estimates, with a reported $14.8 billion, compared to Wall Street's expectations for $14.92 billion. Same store sales were down by 0.7% in the quarter, but revenue was actually higher by 5.4% as the company's new stores were able to overshadow the decrease in revenue that the company witnessed in its stores open more than a year.

In a statement, Target's Chief Executive, Gregg Steinhafel, stated that "the current economic environment remains challenging" and that Target will continue "to generate long-term value for our shareholders by remaining focused on the disciplined execution of our strategy."

Target is the second largest retailer in the U.S. behind Wal Mart (NYSE: WMT). Over the past several years Target has carved out a decent chunk of retail market share with its inexpensive but chic clothing line and home accessories. The current market is tough on Target as shoppers have been cutting back on clothing and home furnishings and focusing on necessities.

Early in the trading day the stock was able to stay slightly in the green, but over the past couple of hours the stock has moved into the red. As of 12:30, the stock is trading at $54.80, down $0.12.

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.