Target was already facing a very public revolt from some of its most loyalcustomers. Now it? warning about tariffs.
The company said Wednesday that sales fell last quarter,driven in part by customer backlash to Target? reversal on diversity, equityand inclusion (DEI) programs. Target also cut its guidance as President DonaldTrump? tariffs push up costs for the company.
Target? sales at stores for at least a year tumbled3.8% last quarter. Fewer customers visited Target and spent less when theyshopped. Target also cut its financial outlook, a sign Target? problems won?go away quickly. The company expects sales to decline by low single-digits thisyear.
The company announced that it established a multi-year?nterprise Acceleration Office?to speed up growth plans, and it reshuffledits utive team.
?e faced several additional headwinds this quarter,including five consecutive months of declining consumer confidence, uncertaintyregarding the impact of potential tariffs, and the reaction to the s weshared on (DEI) in January,?Target CEO Brian Cornell said on a call withanalysts Wednesday.
Cornell warned of ?assive potential costs?from tariffs,but said the retailer could offset them by diversifying suppliers, adjustingproducts ?and hiking prices, if necessary.
?e have many levers to use in mitigating the impact oftariffs and price is the very last resort,?he said.
Target? stock (TGT)ped 7% during pre-market trading Wednesday. Target? stock has declined 37%over the past year.
Cornell acknowledged in a recent email to staff that it hasbeen ? tough few months?between the retail economy ?eadlines, social mediaand conversations that may have left you wondering,?the Minnesota StarTribune reported. (Targetconfirmed the email to CNN.)
Cornell said Target? culture and commitment to staff hasnot changed.
? recognize that silence from us has d uncertainty,so I want to be very clear: We are still the Target you know and believe in,?ornell said.
