Target said reaction to the rollback of its diversity, equity and inclusion efforts was a headwind in the first quarter.

The retailer's CEO attributed the results to weakness in discretionary spending, declining consumer confidence, uncertainty over tariffs, and shopper backlash against the company’s decision to halt diversity initiatives.

Ticker: Target sales drop in 1st quarter and retailer warns they will slip for all of 2025; Canton company fined $11M

The past few years of cost-of-living increases, which have forced many shoppers to focus on the basics, have shifted that narrative for Target.

Target's sales fell more than the Minneapolis-based retailer expected they would in the first quarter, and the company is warning they will slip for the rest of the year as shoppers limit spending.

Retailers have been treading carefully around the question of price increases and import taxes since Trump slammed Walmart last weekend.

As Target Corp. looks to rebound from a disappointing quarter, it's turning to a top executive to lead a new efficiency venture. But it's not its CEO — at least not its current one.

The discounter announced on Wednesday that sales 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.

Retail giant Target is facing an increasingly complex array of challenges, from slumping sales and shifting consumer spending habits to ongoing supply chain complexities and the lingering fallout from past controversies.