Given the headwinds Target has faced this year, many advisors were not expecting to hear good news at the retailer's latest earnings call. Hesitation over the retail giant's quarterly performance seems to have been well-founded.
Target Corporation NYSE: TGT is struggling in 2025 and will take time for a sustained turnaround. However, its business remains profitable and a turnaround is likely, making it a deep-value, high-yielding retail stock trading at a generational low.
Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>>
Sales at retail giant Target took a dive during the first three months of 2025 and executives have indicated that boycotts over its rollback on diversity, equity, and inclusion (DEI) practices are at least partially to blame.
The discount chain attributed its recent sales slump partially to tariff uncertainty, but stressed that price hikes are only one option.
The past few years of cost-of-living increases, which have forced many shoppers to focus on the basics, have shifted that narrative for Target.
Sales at Target fell more than expected in the first quarter and the retailer warned they will slip for all of 2025 year as its customers, worried over the impact of tariffs and the economy, pull back on spending.Target also said that customer boycotts have also done some damage. The company scaled back many diversity, equity and inclusion initiatives in January after they came under attack by conservative activists and the White House.
Target reported a 3.8% decrease in comparable sales for the first quarter and said it expects to see a low single-digit decline in sales for fiscal 2025.
Tariffs haven't touched the outlook at TJ Maxx and Marshalls.
The headline numbers for Target (TGT) give insight into how the company performed in the quarter ended April 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Cornell reportedly said Target would only raise its prices amid tariffs as a “very last resort.” Even as other retailers, like Walmart, have warned of hiked prices, Target still has “many levers to use in mitigating the impact of tariffs,” Cornell said.