Target's stock drops as earnings fall below forecasts, and the outlook was lowered

Dow Jones
2025/05/21

MW Target's stock drops as earnings fall below forecasts, and the outlook was lowered

Shares of Target Corp. (TGT) slumped 2% in premarket trading Wednesday, after the discount retailer missed fiscal first-quarter earnings expectations and cut its full-year profit outlook, as the retail environment continued to be highly challenging.

The company also established an "acceleration" office and some leadership changes to improve efficiency and speed up its growth plan.

For the quarter to May 3, adjusted earnings per share dropped to $1.30 from $2.03 a year ago, and missed the average analyst EPS estimate compiled by FactSet of $1.61.

Net sales declined 2.8% to $23.85 billion, below the FactSet consensus of $24.23 billion, as comparable sales decreased 3.8% to miss expectations of a 2% decline.

For fiscal 2025, the company cut its guidance range for adjusted EPS to $7.00 from $9.00 from $8.80 to $9.80.

This is breaking news. Check back for updates.

-Tomi Kilgore

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May 21, 2025 06:43 ET (10:43 GMT)

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