Target sales fall sharply in first quarter as customers worry about tariffs

Retailer warns sales will slip for all of 2025 as customers pull back spending amid fears over tariffs and economy

Sales at Target fell more than expected in the first quarter, and the retailer warned they will slip for all of 2025 year as its customers, worried over the impact of tariffs and the economy, pull back on spending.

Target also said that customer boycotts have also done some damage during the latest quarter. The company scaled back many diversity, equity and inclusion (DEI) initiatives in January after they came under attack by conservative activists and the White House. Target's retreat created another backlash, with more customers angered by the retailer's reduction of LGBTQ+-themed merchandise for Pride month in June of 2023.