's (NYSE: TGT) fiscal first quarter wasn't everything shareholders were hoping for. Neither was its second-quarter outlook. The retailer topped Q1's earnings estimates, but sales were flat, and the current quarter's top and bottom lines should be lackluster. The company cites increasingly cautious consumers as the cause of the headwind.

It's not all bad news, however. The company made important progress on one key front: inventory. It's no longer sitting on a mountain of the wrong merchandise, and therefore is no longer taking big markdowns to get rid of it.

Two pictures tell the tale.

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Source Fool.com