Target reported a 2.8% decrease in quarterly sales from the previous year, falling short of Wall Street’s expectations at $23.85 billion.
The company experienced a decline in comparable store sales, with physical store sales dropping by 5.7% and a 4.7% increase in online sales, reversing the previous quarter’s upward trend.
The big picture: Target earned $1.04 billion or $2.27 per share in the first quarter of 2025, compared to $942 million or $2.03 per share in the same period last year.
- The company lowered its annual sales projections, forecasting a low-single-digit decline for 2025 instead of the previously projected 1% increase.
- Out of 35 tracked merchandise categories, Target is only gaining or maintaining market share in 15, specifically in women’s swimwear, infant and toddler clothing, and active wear.
Driving the news: Target attributed its sales decline to customer concerns about tariffs and the overall economic impact, resulting in reduced spending.
- The company also mentioned the negative impact of customer boycotts, especially those related to reductions in diversity, equity, and inclusion initiatives that it made in response to conservative activist and White House pressure.
What we’re watching: Target is establishing a new office led by its Chief Operating Officer to facilitate faster decision-making and accelerate sales growth.
- The company announced a plan to offer 10,000 new items starting at $1, with the majority priced under $20 to lure back customers affected by economic uncertainty.
- Target’s Chief Strategy and Growth Officer, Christina Hennington, is stepping down from her position.
