Siddharth Cavale and Juveria Tabassum
(Reuters) – Target predicted comparable sales for the full year on Tuesday, saying tariffs and uncertainty over consumer spending will weigh first-quarter profits.
The Minneapolis-based retailer joined retail Belvette Walmart, increasing caution about annual expectations as President Donald Trump Trump’s grumpiness and imposes sticky inflation and tariffs on imports, especially for unnecessary categories such as home furniture and electronics, which constitute more than two-two of the target sales.
According to data compiled by LSEG, Target expects comparable sales to 2026 will be in the year through January 2026 compared to analysts’ average estimate of 1.86%. It expects earnings per share of $8.80 to $9.80, largely with Wall Street’s valuation of $9.31. Target said the annual forecast will not take into account any impact of tariffs.
A target spokesman said consumers continue to be under pressure, at least some noise surrounding the tax was sold in February.
“The company is expected to see meaningful year-on-year profit pressure in its first quarter,” it said, attributed to tariff uncertainty and weak demand for clothing and other discretionary products in February.
“We will continue to monitor these trends and will remain cautious about what we expect for the coming year,” Chief Financial Officer Jim Lee said in a statement.
The disappointing prospect may reflect the mood of shoppers who shrank far more than expected in January and show they are more worried about the impact of tariffs on their wallets.
In particular, Target also faced more rebound and resistance in ending its diversity and inclusion (DEI) initiative in January, with some noting that the company’s reputation for inclusion helped it attract a young, more diverse consumer base.
According to Placer.ai, average traffic at Target stores fell 6.1% from January 27 to February 23. Target did not mention any impact of ending the DEI program in its prospects.
According to data compiled by LSEG, the holiday quarter reported a 1.5% increase in comparable sales and an estimated 1.3%.
Earnings per share fell 19.3% to $2.41, but was estimated at $2.27. Total gross and operating margins declined due to higher promotion and delivery costs.
Target’s shares were successful between gains and losses in their listing transactions on Tuesday. They lasted 1%.
