Target reported its sales declined in the first quarter of 2025.
Target is the latest retailer, believing that President Donald Trump's tariff policy has compensated its business with potential damages and warning of possible gains in the near future.
The company, one of the largest discount department store chains in the U.S., held a profit call on May 21 to report some first-quarter numbers that were not as good as racing. In the first three months of 2025, the targeted total sales were nearly 3%, compared with the same period last year. The number of in-store and online transactions fell by 2.4%, while customers also lost 1.4%.
CEO Brian Cornell said tariff uncertainty surrounding Trump is one of the reasons customers are backing off on spending, even if the full impact of these import taxes may not be for a while. He also acknowledged that the consumer rebound was to dial back its dial-up diversity, equity and inclusive efforts, consistent with Trump’s executive order against such plans.
Target chief business officer Rick Gomez said future price increases are just one option the company is considering dealing with the tariff shock. He stressed that this is a “last vacation” option, adding that the goal can also negotiate new deals with suppliers or change the schedule for their ordering products.
“We have a lot of leverage that can be used to mitigate the impact of tariffs and the impact of prices,” Gomez said.
Walmart warned on its recent earnings call that price increases, such as toys, technology and food, are inevitable and likely to be implemented in the summer. Trump has often slammed companies that blame tariffs on rising prices, especially following Amazon, as rumors say it will begin listing the impact of tariffs on prices. After Trump's response, the company claimed that it was never its plan.
