Target on Wednesday reported another quarterly profit decline and issued a cautious sales and profit outlook for the current period.

The Minneapolis company is dealing with rising costs, which includes rising theft as a big factor, and consumers who have become more cautious about spending.

The company still topped Wall Street expectations and stuck to annual profit guidance above industry analyst projections.

Target is among the first major U.S. retailers to report quarterly results, and a lot of attention will be paid to the impact that stubbornly high inflation and tightening credit are having on customers. Walmart, the nation’s largest retailer, reports earnings Thursday. Macy’s, Kohl’s and Nordstrom post quarterly results later this month.