Target Cuts Outlook as Economic Uncertainty, Tariff Pressures, and DEI Backlash Undermine Sales

Target cut its full-year sales outlook on Wednesday after first-quarter results missed expectations. The retail giant reported adjusted earnings per share of $1.30, though it’s unclear how that compares to the $1.61 analysts expected. Revenue came in at $23.85 billion, missing the $24.27 billion forecast. Target saw a 2.4% drop in transactions and a 1.4% decline in average customer spending across its stores and website. Executives cited weaker discretionary spending, tariff uncertainty, and backlash over the rollback of diversity efforts as key pressures. Target now expects full-year sales to decline in the low single digits and lowered adjusted EPS guidance to $7 to $9, down from $8.80 to $9.80. Target will raise prices on some items to manage tariffs, while continuing to adjust sourcing strategies to reduce dependence on China.