Target Corporation, commonly known as Target, is a major American retail corporation founded in 1902. The company, headquartered in Minneapolis, Minnesota, runs a large network of stores across the U.S. It offers products like clothing, electronics, groceries, and household goods.
Target recognized for its red logo and design-focused approach, it is a top choice for shoppers seeking quality and affordability. Also, Target prioritizes innovation, sustainability, and community engagement, constantly evolving to enhance the shopping experience.
Target Fiscal Q1 2025
Target (TGT) reported its first-quarter 2025 financial results, posting Adjusted earnings per share (EPS) of $1.30, came in below analyst expectations, reflecting a challenging retail environment and weaker-than-anticipated sales growth.
Net sales for the quarter were $23.8 billion, down from $24.5 billion in 2024, also falling short of projections.
Highlights:
- Net sales: $23.8 billion, down from $24.5 billion in 2024.
- Digital growth: Sales increased 4.7%, with same-day delivery up 35% through Target Circle 360.
- Valentine’s Day and Easter sales outperformed regular shopping periods.
- Kate Spade for Target was the most successful partnership in over a decade.
- Earnings per share (EPS): GAAP EPS was $2.27 (up from $2.03 last year). Adjusted EPS was $1.30.
Outlook
For 2025, the company expects sales to drop slightly. Earnings per share (EPS) under standard accounting rules (GAAP) will likely be between $8 and $10. Adjusted EPS, which does not include gains from legal settlements in the first quarter, is expected to be around $7 to $9.
Board Statements
Brian Cornell, CEO of Target, said that Target faced a highly challenging environment in the first quarter but remained focused on delivering the quality assortment, experience, and value that customers expect. While sales did not meet expectations, he highlighted bright spots such as healthy digital growth, including a 36% increase in same-day delivery through Target Circle 360, and the success of the Kate Spade for Target collaboration, which became the company’s strongest designer partnership in over a decade.
He acknowledged that while these achievements reinforce confidence in Target’s business, the company is not satisfied with its current performance and sees opportunities to accelerate progress. To drive long-term profitable growth, Target announced the creation of a multi-year acceleration office, led by Michael Fiddelke, along with several leadership changes. Cornell emphasized that these steps are designed to build speed and agility into the company’s operations and strengthen key capabilities.
With these strategic changes and strong financial stability, Cornell expressed confidence that Target will evolve into an even stronger company over time.
Impact on the Stock Market
Target’s stock fell 4% in pre-market trading after disappointing first-quarter earnings, where both EPS and revenue missed expectations. The company also lowered its full-year sales outlook, raising investor concerns over slower consumer spending and competitive pressures.
This decline reflects cautious market sentiment, as traders worry about Target’s ability to return to growth. Investors are closely watching the company’s new leadership strategy, including the Enterprise Acceleration Office, to gauge whether these initiatives can stabilize performance and boost long-term profitability.
