The company reported a 2.4% decline in transactions and a 1.4% drop in average customer spending. While digital sales rose 4.7%, it wasn't enough to offset broader weakness in its core discretionary categories.

After announcing a rollback of DEI initiatives, a boycott of the retailer has led to a decline in sales and foot traffic.

The retailer announced earlier this year it would phase out long-term diversity, equity and inclusion goals after a conservative-led backlash.