Target reports 7% sales decline after rolling back DEI initiatives, facing community boycotts and advocacy group protests over diversity program cuts.

The discounter announced on Wednesday that sales 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 Corporation faces declining sales, weak traffic, and margin pressures despite a 4.5% dividend yield. Click for my TGT earnings review and look at value.

The disappointing performance and the lack of clarity around tariffs and the overall macroeconomic picture led Target to lower its full-year earnings and sales guidance — as well as form a new “Enterprise Acceleration Office” to expedite progress on its strategic growth plan.

The retailer's CEO attributed the results to weakness in discretionary spending, declining consumer confidence, uncertainty over tariffs, and shopper backlash against the company’s decision to halt diversity initiatives.

Q1 2025 Earnings Call Transcript May 21, 2025 Target Corporation misses on earnings expectations. Reported EPS is $1.3 EPS, expectations were $1.56. Operator: Ladies and gentlemen, thank you for standing by.

Target shares sank 7% Wednesday morning after the retail giant lowered its full-year sales projection following mixed first-quarter results.

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.