Target CEO Brian Cornell said on Tuesday that the company has been grappling with a “highly challenging environment” following a quarter of softer-than-expected revenue and ongoing profit pressures.
During the first fiscal quarter, Target reported its first-quarter net sales were $23.8 billion, down 2.8% from the same period a year ago and below Wall Street’s projection of $24.32 billion. Adjusted earnings per share was $1.30, which was also below Wall Street’s expectation of $1.63.
Sales at stores open for at least a year decreased 3.8% in the first quarter, though Target said it still had healthy digital growth, led by a 36% increase in same-day delivery through its loyalty program, Target Circle 360.
Target is now expecting a low-single digit decline in sales for fiscal 2025. It expects adjusted earnings per share to be approximately $7 to $9 for fiscal 2025, down from its prior expectation of $8.80 to $9.80.
The Minneapolis-based retail behemoth has been trying to drum up traffic and return to growth, but the past three months in particular have been marked by broader industry headwinds, namely President Donald Trump’s tariff war, which threatened to raise prices for consumers across multiple sectors.
This is an excerpt from an article by Fox Business’ Daniella Genovese. To read more, click here.
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