Target said its 1Q 2008 profits dropped almost 8%, on softer than expected sales and higher costs. The retailer reported a profit of $602 million, or $0.74 per share, in the three months ended May 3, down from $651 million, or $0.75 per share, during the same period last year. Revenue rose 5% to $14.8 billion from $14 billion. Sales at established stores fell 0.7%. Retail profits not counting interest and taxes fell 2% to $959 million. The company runs 1613 Target stores in 47 states.