Overview

• Target cut its 2025 sales forecast to a low-single digit decline after initially projecting 1% growth in March, reflecting a steep drop in consumer spending.
• First-quarter comparable sales fell 3.8%, with in-store sales declining 5.7%, as consumer sentiment hit its second-lowest level on record in May.
• CEO Brian Cornell stated that price hikes due to tariffs would be a 'very last resort,' as the company works to diversify supply chains and negotiate with vendors.
• Walmart has already begun raising prices on some goods, prompting public criticism from President Trump, who demanded the company 'eat the tariffs.'
• Home Depot has avoided price increases by diversifying sourcing and negotiating vendor concessions, while other retailers like Best Buy and Mattel have signaled potential price hikes.