Target reported a sharp decline in sales for the first quarter ending May 3, with comparable sales down 3.8% amid a difficult retail environment and a rollback of Diversity, Equity, and Inclusion (DEI) initiatives. Store traffic fell 2.4%, but digital sales grew 4.7%, aided by a significant uptick in same-day delivery. CEO Brian Cornell acknowledged the challenges and indicated that while some prices may increase due to tariffs, the company is looking to adjust sourcing strategies. The overall outlook is for a low-single-digit sales decline for the full year, amidst structural changes in leadership to drive strategy execution.
Target's comparable sales dropped 3.8% in a challenging market, reflecting a shift in consumer preferences and the impacts of rolling back DEI initiatives.
CEO Brian Cornell expressed that sales fell short of expectations, highlighting ongoing challenges while noting a notable growth in digital sales.
The company expects low-single-digit sales decline for the year, adapting to tariff impact by sourcing more domestically.
Target plans to revitalize strategy through an 'acceleration office' to counteract sales declines.
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