Photo: Getty Images
Target sales significantly dropped in the first quarter of 2025 and are expected to continue dipping for the rest of the year, per Fox 2.
An earnings report released on Wednesday (May 21) showed that Target netted $23.8 billion in first-quarter sales, which is down from $24.5 billion in 2024. Target noted that net sales were 2.8 percent lower than last year, with merchandise sales decreasing 3.1 percent.
Comparable sales were also down 3.8 percent in the first quarter, which includes a comparable store sales decline of 5.7 percent. While in-store sales were down, the first-quarter operating income totaled $1.5 billion, 13.6 percent higher than in 2024.
Target said it's expecting a "low-single digit decline in sales" for the rest of the year.
"In the first quarter, our team navigated a highly challenging environment and focused on delivering the outstanding assortment, experience, and value guests expect from Target," Brian Cornell, chair and chief executive officer of Target Corporation, said in a statement. "While our sales fell short of our expectations, we saw several bright spots in the quarter, including healthy digital growth, led by a 36 percent increase in same-day delivery through Target Circle 360, and our strongest designer collaboration in more than a decade, Kate Spade for Target.
"While these highlights reinforce our confidence in the underlying health of our business, we're not satisfied with current performance and know we have opportunities to deliver faster progress on our roadmap for growth," he continued. "This morning, we announced the establishment of a multi-year acceleration office, led by Michael Fiddelke, along with several leadership changes. These steps forward are intended to build more speed and agility into how we operate, and position key capabilities to drive long-term profitable growth. With these changes and the financial strength to continue investing in our business, I'm confident we can emerge an even stronger company over time."
The decline in sales comes after Target rolled back its DEI initiatives in January amid the Trump administration's sweeping crackdown. The company's stance on DEI sparked boycotts, which Target acknowledged had affected its first quarter results. Shoppers are also reducing spending due to looming tariffs and uneasiness over the U.S. economy.
The Black Information Network is your source for Black News! Get the latest news 24/7 on The Black Information Network. Listen now on the iHeartRadio app or click HERE to tune in live.