Target Corporation (TGT) shares tumbled 5.01% in pre-market trading on Wednesday following the release of its disappointing first-quarter earnings report and lowered annual forecast. The retail giant's performance fell short of Wall Street expectations, reflecting the challenges faced by American consumers and the impact of recent controversies.

For the quarter ended May 3, Target reported adjusted earnings per share of $1.30, significantly below the analyst consensus estimate of $1.61. Revenue also missed the mark, coming in at $23.85 billion, a 2.8% decline from the previous year and short of the expected $24.23 billion. The company's comparable sales decreased by 3.8%, worse than the anticipated 1.08% drop, with store sales declining by 5.7% while digital sales grew by 4.7%.

In response to the weak results, Target has slashed its annual forecasts. The company now expects a low-single digit decline in full-year sales, a stark contrast to its previous projection of about 1% growth. The adjusted earnings per share guidance has been revised down to a range of $7.00 to $9.00, compared to the earlier forecast of $8.80 to $9.80. CEO Brian Cornell cited several factors contributing to the poor performance, including tariff uncertainty, weakened consumer confidence, a pullback in discretionary spending, and the impact of boycotts related to the company's decision to end some diversity programs. To address these challenges, Target has established an "acceleration" office led by Michael Fiddelke to improve efficiency and speed up its growth plan.