On Wednesday, Target announced on an earnings call that it earned $23.85 billion in revenue, missing analyst expectations by nearly half a billion dollars, and down 2.8% YoY. Comp sales fell 3.8% as compared to a year ago.
Customers went to the store less and bought less on each trip. In-store foot traffic dipped 5.7%, the number of transactions both in-store and online dropped 2.4%, and the amount customers spent decreased 1.4%. Target now expects total sales to fall in the low single digits this fiscal year, reversing its earlier projection of 1% growth.
The company blamed uncertainty around tariffs, backlash to its canceled diversity initiatives, and depressed consumer sentiment for its bad quarter.
Target’s adjusted earnings per share were down nearly 36% from a year ago, to $1.30, 21% below expectations. Margins were squeezed by supply chain costs, digital fulfillment expenses, and heavier-than-usual markdowns. And the stock is down nearly 30% this year.
