Target Corp. posted higher-than-expected earnings for its fiscal first quarter, a sign that consumers with slightly more financial stability are migrating back to stores such as Target as the recession wanes.

Reuters reported that the discount retailer’s profit rose to $671 million, or 90 cents per share, in the quarter ended May 1 from $522 million, or 69 cents a share, a year earlier.

Sales at Target stores that have been open at least a year rose 2.8 percent, while much larger rival Wal-Mart Stores Inc. posted a worse-than-expected sales drop at its U.S. discount stores on Tuesday.

Warehouse club operator BJ’s Wholesale Club Inc. also reported an increase first-quarter increase in profits in its fiscal first quarter as higher sales of candy, cigarettes, housewares and small appliances helped lift results.

The Natick, Mass.-based company, which charges customers a membership fee to shop at its stores, said profits rose to $26.1 million, or 49 cents a share, in the quarter, which ended May 1, beating analysts’ average expectation of 43 cents a share.

As a reason for the strong performance, Target cited sales of more profitable items such as apparel as consumers began to spend on more than just necessities.

The Minneapolis-based company also said a sharp reduction in bad-debt expense from a year earlier helped improve its credit card business.

Profits in that division jumped to $111 million from $39 million.