Target’s woes continue.
The underperforming retailer has struggled with tariff-fueled anxiety among shoppers and protests in response to its retreat from diversity policies. On Wednesday, it again fell short of expectations for quarterly sales and slashed its full-year financial forecast. Target now expects a “low-single-digit decline” in sales this year, down from a projection a few months ago of a small gain.
The gloomy forecast set Target apart from some of its competitors that have in recent days maintained their outlooks, even while warning of the risks and uncertainty generated by President Trump’s tariffs.
Comparable sales at Target last quarter, which ended May 3, fell 3.8 percent from a year earlier, reflecting both lower foot traffic and less spent per visit. The retailer’s stock fell roughly 6 percent in early trading as investors digested the weaker-than-expected report.
“We’re not satisfied with this performance,” Brian Cornell, Target’s chief executive, said on a call with analysts. The report was the latest evidence that the retailer’s effort to rebound from a difficult 2024 a year marked by inconsistent sales growth and a tumbling stock price has yet to materialize.
A “highly challenging environment” dragged down Target’s financial results, it said; retailers across the board are navigating tariff-fueled cost increases and dampened consumer sentiment.
Price increases in response to tariffs have taken center stage as major U.S. retailers report their latest earnings. When Walmart said last week that it would raise prices for some products because of tariffs, the company faced swift public backlash from Mr. Trump, who called on social media for the company to “EAT THE TARIFFS.” Mattel, the toy company, faced similar ire this month.
That has put retailers like Home Depot and Target, which both reported quarterly earnings this week, in a tricky position, with investors expecting the companies to detail their pricing plans and executives weighing potential backlash from Washington. Home Depot went out of its way on Tuesday to emphasize that its prices would “generally” hold steady.
Credit: NYTIMES