Purpose (TGT) Q1 2025 Profit

Target Wednesday reduced the sell Consumer uncertainty about tariffs and reverse On the rollback of the company on key diversity, justice and inclusion, it is harmful to its business.

Sales in the first quarter missed Wall Street expectations and decreased by almost 3% compared to the period of the year. Target and site operations decreased by 2.4%. And the average number Customers spent on the Internet and in the store decreased by 1.4%.

Weak performance Target in the quarter reflected a wider company struggles To get back to growth and give up Buyers and investors as its sale continues, and after its stocks last year plunged more than 37%, as of Tuesday.

On a call with journalists, CEO Brian Cornell pressed a lot of retail problems to the economy. However, he said the goal is trying to do better.

He referred to the statistics that Target divided into a call: of the 35 categories of goods that the company monitors internally, the company received or occupied the market only for 15 – the sales display that it loses the competitor.

“We are not satisfied with that,” Cornell said. “We need to grow (market) share of 60, 70, 80% of these categories. This is the focus of the Balance of the Year, and we will do it, making sure we will provide a great trading setting.”

Target said it is now expected to reduce low -plants sales compared to the previous net growth outlook about 1%. It states that it is expected to adjusted profit per share, except for the income from the calculations of court conversations, will be about $ 7 to $ 9, compared to the range from $ 8.80 to $ 9.80, which previously assumed.

Target also announced some slopes guidance and creation of a new office designed for reversal Its results. Chief Operational Director Michael Fiddelke will watch the new efforts called the Acceleration Acceleration Management, which will look for methods to simplify the operations of the company, use technology and speed up Target growth.

In a press release, Target stated that Amy Tu Tu, Chief Rights Director and fulfillment, and Christina Henining, Chief Director for Strategy and Growth, left the company. Henington who was the main leading Some calls were widely considered in the industry circles that would be a candidate to succeed in Cornell as CEO.

That’s what the retailer based in Minneapolis reports, in the financial first quarter compared to Wall Street estimates, LSEG analysts said:

• Income per share: 1.30 dollars adjusted, unclear if the indicator is compared to expected analysts $ 1.61
• Income: 23.85 billion against $ 24.27 billion expected

During the three -month period ended on May 3, the net revenue target rose to $ 1.04 billion, or $ 2.27 per share, with $ 942 million, or $ 2.03 per share, in The period of the year.

Comparative sales in the quarter decreased by 3.8%compared to the period of the year, as comparable sales in the store decreased by 5.7%and digital sales increased by 4.7%.

The tariffs added only a complex set of problems for the goal. The annual discourant revenue has been approximately flat for four consecutive years. The sales were weaker in many discretion categories that are known for a retailer, such as home decor because consumers are selective and cautious about costs. And the company collided with the background of buyers – and pressure from the activists, including the Rev. Al -Charpan – for backing down to the basic parts of their diversity, justice and inclusion.

Cornell told reporters that Target was where he hoped to be in the financial first quarter. However, it pointed to some bright spots, including 36% jump in one day as part of the membership program, Target Circle 360, and the popularity of the collection of clothing and accessories with limited time with tapestry, Kate Speed ​​brand.

During the first quarter, the target share of the market in some categories, said Chief Commercial Director Rick Gomez to call journalists. These included drinks, flower and products. He also noticed stronger sales of women’s swimwear and clothing for small and jumping around seasonal events, including Valentine’s Day and Easter.

Target Profits Follow Other Sellers Updates, including Walmart and Home Depot. Both retailers with a large box confirmed their views on the full year when they reported Quarterly profit. However, both companies diverged with how im going to manage Higher costs from tariffs. Walmart warned it will have to increase prices For customers, as soon as this month is duties. On the other hand, Home Depot said he did not plan a hike.

The goal is to increase prices for some items that will help cover the tariff expenses, Gomez said. He said the company was also trying to minimize the influence of duties, leading negotiations with suppliers, reassessing the goods it sells by changing the country that produces items and adjusting the orders.

Despite the fact that reporters repeatedly pressed, Cornell did not give specific plans for tariffs related to tariffs, either replied, or increased retail since the beginning of March because of his duties.

“We constantly adjust the prices,” he said. “Some rise, some will shrink, but it is a constant effort that goes through every day.”

In an interview in early March Cornell said he Expected customers to see higher prices For a strawberry, avocado and bananas in the coming days, 25% of the expected tariffs for Mexico and Canada are expected. Since then, the United States has been released from the levies of many goods of these countries, but imports from China – a large production center for Target – now has 30%.

About half of what is currently being sold, goes from the US, Gomez said. Over the past few years, he has said that the retailer has tried to transfer its private brands to different countries outside China.

Thanks to the private labels brand, Target has moved from approximately 60% from China to 30%, and the company plans to reduce it to 25% by the end of next year, he said.

The pressure on the costs will continue in the second quarter, but the goal is waiting for greater relief in the posterior half of the year, said Chief Financial Director Jim Lee on call with journalists. He said Target had a slightly higher cost of the first quarter-related inventory, such as MarkDowns due to slow demand.

Despite the tariff expenses, offering items with a lower cost, it remains a priority for the goal, Gomez said. In front of the company stores, it has an area where it sells inexpensive seasonal items for $ 1, $ 3 and $ 5. Gomez said Target seeks to keep the same prices in this part of the store and plans to add beauty mini and fashionable foods and drinks.