Target Corporation (TGT)

Target beats Q4 expectations but braces for impacts from tariffs

Sales and profits slipped for Target during the crucial holiday quarter as customers held back on spending and the company said there will be “meaningful pressure” on its profits to start the year because of tariffs and other costs.The retailer beat most estimates, however, and shares rose slightly before the opening bell Tuesday.Target reported net income of $1.1 billion, or $2.41 per share, far better than the $2.26 that Wall Street was expecting, according to a survey by FactSet. That is down from the $1.38 billion profit the company reported in the same period last year, though the most recent quarter had one fewer week of sales.Revenue fell to $30.91 billion, from $31.9 billion, but that also beat expectations.Americans have been pulling back on spending and retailers face a lot of uncertainty in the year ahead.President Donald Trump's long-threatened tariffs against Canada and Mexico went into effect Tuesday, pushing markets in Asia, Europe, and the U.S. lower, and setting up costly retaliations by the United States' North American allies, not to mention China.China said Tuesday that it will impose additional tariffs of up to 15% on imports of key U.S. farm products, including chicken, pork, soy, and beef, and also expanded controls on doing business with key U.S. companies.Consumers have already been pulling back on discretionary spending because the costs of groceries have risen so sharply.