Target Reports Strong Q4 Results but Warns of Profit Challenges from Tariffs

The retailer exceeded fourth-quarter expectations but forecasts flat sales and profit pressure due to tariffs and cautious consumer spending.

Target's Q4 earnings per share (EPS) reached $2.41, surpassing analysts' expectations of $2.26, despite a 3% decline in revenue to $30.92 billion.
Comparable sales grew 1.5% in Q4, driven by a robust holiday shopping season, outperforming earlier projections of 1.39% growth.
The company predicts significant profit pressure in Q1 2025, citing tariff uncertainty, weak February sales, and higher costs.
Full-year guidance includes flat comparable sales and adjusted EPS between $8.80 and $9.80, below analysts' average expectations.
Target highlighted declining consumer confidence, reduced discretionary spending, and the impact of tariffs as key challenges for the year ahead.