Target Corp has warned of “meaningful” pressure on profit over the coming quarter due to the likes of consumer uncertainty and fears around tariffs.
Net sales had declined in February, the retailer said in fourth quarter figures on Tuesday, in a “soft” start to its new financial year.
“Uncharacteristically cold weather” had affected apparel sales, as “declining consumer confidence” also hit discretionary spending, the company noted.
Warnings come after Walmart and E.l.f Beauty similarly flagged a slower start to the new year, adding to building concerns around the US economy.
Net sales should grow over the course of 2025 though, Target said, by “around one percent,” as earnings per share reach $8.80 to $9.80.
For the fourth quarter to February 1, revenue fell by 3.1% to $30.92 billion, while per share earnings tumbled 19.3% to $2.41, with both figures beating analysts’ expectations.
This left revenue at $106.57 billion and earnings per share at $8.86 for the year, marking drops of 0.8% and 0.9% respectively.