Target (NYSE: TGT) reported fourth-quarter earnings Tuesday morning, and the results make it clear that the company is still struggling in the current macroeconomic environment.

Comparable sales rose just 0.7%, on top of 8.9% growth in the quarter a year ago, and overall revenue was up 1.3% to $31.4 billion, beating estimates of $30.7 billion. Weak performance in discretionary categories like electronics, home, and apparel was offset by stronger results in consumer staples categories like food and beverage, beauty, and household essentials. 

Due to the need to clear inventory and the poor performance in higher-margin categories, gross margin slipped from 25.7% to 22.7%, and operating margin was nearly cut in half, dropping from 6.8% to 3.7%.

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Source Fool.com