Retail giant Target has suffered its worst earnings quarter in years, missing analyst expectations and seeing declining foot traffic due to a social media boycott sparked by the company’s reversal of its diversity initiatives. The chain reported $23.85 billion in revenue, down 2.8% from last year, with comp sales falling 3.8% and in-store foot traffic dipping 5.7%. The company attributes its poor performance to uncertainty over tariffs, backlash to its canceled DEI programs, and decreased consumer sentiment.
The decline is a classic case of economic uncertainty hitting cyclical retailers like Target hard, causing consumers to seek cheaper alternatives like Walmart. Even affluent households are cutting back on spending on groceries, with Walmart reporting increased sales from high-income earners. The company’s adjusted earnings per share plummeted 36% compared to last year, and the stock has fallen nearly 30%.
Source: https://fortune.com/2025/05/28/target-missed-analysts-sales-expectations-dei-boycotts