Target’s cut in guidance for the remainder of 2025 is another worrying sign that U.S. consumers are pulling back.
Today’s earnings report from Target (TGT) was never going to look pretty.
The company was certain to report some drop in revenue as a result of customer boycotts after it scaled back diversity, equity and inclusion initiatives early this year following criticism by the White House and conservative activists.
But the news that really hurt the stock was that Target had cut its forecast for earnings for the full year. For the first quarter Target reported adjusted earnings of $1.30 per share, down 36% against $2.03 a share last year. Revenue declined 2.8% to $23.8 billion.Analysts had expected earnings of $1.61 per share on $24.22 billion in revenue. Comparable sales fell 3.8% for the quarter, missing projections for a 1.9% decline. Target reported that same-store sales fell 5.7%, partially offset by 4.7% comparable digital sales growth. Target cut its earnings guidance for fiscal 2026 to $7 to $9 from $8.80 to $9.80 a share. The retailer now expects a low single-digit decline in sales. In its fiscal fourth quarter 2025 report, Target had said expected about 1% net sales growth.
Analysts had expected full-year earnings of $8.34 per share on a slight uptick in sales to $106.67 billion.
Target shares closed down 5.21% today and are now lower by 31.2% for 2025 to date.
