Target Says Tariffs And DEI Backlash Will Hurt Sales
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Topline Target on Wednesday reported first-quarter sales and revenue that fell well below expectations, as executives warned the retailer’s sales will likely decline in 2025, citing boycotts after the company scaled back diversity, equity and inclusion efforts and as consumers—facing uncertainty with tariffs—retreat on spending. The retailer announced earlier this year it would phase out long-term diversity, equity and … More inclusion goals after a conservative-led backlash. AFP via Getty Images Key Facts Target’s sales fell just over 2.8% year-over-year to $23.85 billion through its first quarter in fiscal year 2025, the company said Wednesday, below the $24.23 billion projected by analysts, according to FactSet. The retailer lowered its full-year sales and earnings projections for the year, as Target now expects a low-single-digit decline for sales and adjusted earnings per share between $7 and $9, after previously expecting a 1% increase and a range between $8.80 and $9.80, respectively. Target CEO Brian Cornell and CCO Rick Gomez told reporters a decline in first-quarter sales was likely caused by backlash to the company’s phasing out of long-term diversity, equity and inclusion goals in January, as well as less spending from consumers as they face uncertainty with tariffs. Shares of Target fell nearly 7% to just over $91 as markets opened on Wednesday, and the stock is down 33% on the year. Will Target Raise Prices Because Of Tariffs? 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. Have Other Companies Warned Of Tariff Impacts? Several companies have warned tariffs would likely have an impact on business in 2025. Earlier this month, Apple CEO Tim Cook said the company…
Filed under: News - @ May 21, 2025 4:25 pm