Q1 Wasn't Especially Kind to Target

Same-store sales were down 3.8% YOY
Posted May 21, 2025 7:54 AM CDT
Q1 Wasn't Especially Kind to Target
The logo for Target is displayed above a trading post on the floor of the New York Stock Exchange, Tuesday, May 20, 2025.   (AP Photo/Richard Drew)

CNN is blunt in its assessment: "Target's problems are escalating." That's the takeaway after the company on Wednesday reported that sales at stores open for at least a year sank 3.8% last quarter. More stats to that end:

  • Transactions across Target's stores and website were down 2.4%.
  • The average amount spent per online and in-store visit fell by 1.4%.
  • Q1 sales landed at $23.8 billion, compared with $24.5 billion in 2024.
While the company had previously expected a net sales growth of roughly 1% for the year, it cut its full-year outlook Wednesday. Target now expects a "low-single digit decline in sales," citing a pullback in discretionary spending, possible pressure from tariffs, and backlash to Target's about-face on its DEI programs, reports CNBC.

CNBC flags a key segment from CEO Brian Cornell's call with reporters Wednesday, in which Cornell pointed to this metric: The company tracks 35 merchandise categories and only gained or held market share in 15 of them. "We're not happy with that," Cornell said. "We've got to be growing [market] share in 60, 70, 80% of those categories. That's our focus over the balance of the year, and we're going to do that by making sure we provide a great shopping environment."

Target also revealed a new office tasked with helping to turn things around. Under the helm of Chief Operating Officer Michael Fiddelke, the Enterprise Acceleration Office will work to simplify cross-company processes and technology and data in new ways. Target's stock was down nearly 6% in pre-market trading. As of Tuesday's close, it was down 37% over the past year. (More Target stories.)

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