Target reported disappointing first-quarter earnings on Tuesday, falling short of Wall Street expectations and slashing its full-year outlook. The results come amid growing concerns over consumer backlash tied to the company’s retreat from its diversity, equity, and inclusion (DEI) initiatives earlier this year, along with the potential impact of renewed Trump-era tariffs.
On a media call, CEO Brian Cornell and other executives repeatedly declined to confirm whether rising prices directly result from tariffs. “Pricing is a very dynamic part of our business,” Cornell said, emphasizing that price adjustments happen weekly. He added that Target is exploring ways to soften the impact of cost increases, including shifting more sourcing to U.S. suppliers instead of relying on Chinese imports.
The results may raise fresh concerns about consumer sentiment and cost pressures ahead.