Target Cuts Forecast, Warns of Possible Price Hikes

Target reported a nearly 3% drop in first-quarter sales and lowered its full-year sales outlook, warning that price hikes could be a 'last resort' in response to President Donald Trump’s tariff policies. The company attributed its weaker performance to declining consumer confidence, tighter discretionary spending amid tariff uncertainty, and backlash over scaling back DEI initiatives following a Trump executive order. Target has been negotiating with vendors and adjusting inventory strategies to mitigate tariff impacts, but continues to face challenges such as merchandise missteps and increased retail crime. Despite these challenges, Target saw strong digital growth and improved operational efficiency, and has launched a new Enterprise Acceleration Office to improve adaptability. The company’s stock has fallen significantly this year, reflecting investor concerns about its recovery. In contrast, Walmart has already raised prices and maintained its sales forecast, drawing criticism from Trump for not absorbing tariff costs.