Target reports declining revenue in first quarter

NEW YORK (AP) — Target easily beat first-quarter profit expectations, but slowing sales at the Minneapolis retailer and across much of the retail sector is creating a lot of unease.

Target's weak store sales and its expectations for this quarter, released Wednesday, pushed shares down more than 9 percent, the biggest decliner on the Standard & Poor's index.

Economists have seen a shift in habits, with more disposable income going toward vacations and dining out, rather than toward clothing or accessories.

Shares of both home improvement retailers have recently hit all-time highs.

Industry analysts watch this figure closely when determining a retailer's health because the volatility associated with stores recently opened or closed is removed.

Target is focusing on key merchandise categories like fashion, home furnishings and wellness products.