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

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 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.

RBC Capital Markets maintained its Outperform rating on Target Corporation (NYSE:TGT) but lowered its price target from $112 to $103. The change comes after Target reduced its 2025 guidance due to its first-quarter results.

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.

A boycott launched by Target shoppers unhappy with its DEI retreat has added to the retailer's sales headaches, prompting CEO Brian Cornell to announce sweeping changes Wednesday.

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

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.