MINNEAPOLIS – Target's Neiman Marcus collaboration did not turn out to be a holiday gift to the retailer.

The No. 2 discount chain reported fiscal fourth-quarter net income dipped 2 percent as it dealt with intense competition during the crucial holiday season. Still, the company's forecast for 2013 indicated it may beat many analysts' expectations.

"We're pleased with Target's fourth quarter performance, particularly in the face of a highly promotional retail environment and continued consumer uncertainty," Chairman, President and CEO Gregg Steinhafel said in a statement.