NEW YORK (Bloomberg) — Target Corp., the second-largest US discount retailer, said first-quarter profit declined less than analysts estimated after it limited markdowns and controlled expenses.

Net income fell 13 percent to $522 million, or 69 cents a share, Target said yesterday in a statement. That beat the 60-cent average of estimates compiled by Bloomberg. The retailer said May 7 quarterly profit was "well above" a consensus of 52 cents at that time.

Target reduced inventory and labour costs in the quarter to counter the decline in US consumer spending that has hit most of the retail industry. Chief executive officer Gregg Steinhafel said yesterday on a conference call that he sees a "more normalised environment" as companies reduce their previous inventory glut and offer smaller discounts.

"This company's done a very good job of becoming more nimble and flexible with regard to expenses," said Matt Arnold, an analyst at Edward Jones & Co. He is based Des Peres, Missouri, and recommends buying the shares. "We know that when discretionary spending does come back, that Target's going to be a beneficiary of it in light of how good they are in catering to what consumer preferences are."