New York (AP) – Target sales fell more than expected in the first quarter, and the retailer warned that they would slip for 2025 years as customers, worried about the impact of prices and the economy, withdraw expenses.
Target also said that customer boycotts had also done damage in the last quarter. The company has reduced many diversity, equity and inclusion initiatives in January after being attacked by conservative activists and the White House. Target’s retirement created another reaction, with more angry customers by the reduction by the merchandise retailer on the LGBTQ + theme for the month of pride in June 2023.
Actions dropped 3% before the opening bell on Wednesday.
Sales fell 2.8% to 23.85 billion dollars in the quarter, which was not missing from 24.23 billion dollars that Wall Street was waiting for, according to Factst. Sales are also down compared to the $ 24.53 billion that the company declared during the same period last year.
Target reduced its annual sales projections on Wednesday. The company now provides a low -figure drop for 2025 after planning a 1% increase for sales in March.
It also provides for annual share profits from $ 7 to $ 9, excluding the gains of legal regulations this year.
For the year, analysts expect a profit per share of $ 8.34 on sales of $ 106.7 billion.
Sales of comparable stores, those of established stores and online channels, dropped by 3.8%. This includes a 5.7% drop in store sales and a 4.7% increase in online sales. Which reverses a comparable increase in store sales of 1.5% during the previous quarter.
The number of transactions between online and physical stores dropped by 2.4%, and the average ticket fell by 1.4%. Target said on Tuesday that he could not reliably estimate the individual impact of each of the factors that harm his activities.
Target sets up a new office to be directed by the chief of the farm Michael Fiddelke would focus on making faster decisions to help accelerate sales growth. The chief staff of current strategy and growth Christina Hennington will be a role of strategic advisor.
Target also intensifies efforts to attract nervous customers about the economy and inflation. The retailer claims that he offers 10,000 new articles from $ 1 – with the majority of less than $ 20.
“I want to be clear,” Target CEO, Brian Cornell, to journalists on Tuesday. “We are not satisfied with these results, so we will have the urgency to navigate this period of volatility … We must bring traffic back to our stores or visits to our site.”
Out of 35 categories of goods, including the discretion and the essential elements that the company follows, it earns or maintains market share in just 15, said the company. The company said there were gains in market share in women’s swimsuits, infants and toddlers and active wear.
The latest results highlight Target’s struggle in recent years to rekindle sales, especially in non-session such as fashion and home furnishings, competition becomes more fierce with Walmart and Amazon. Target’s shares have dropped more than 37% in the last 52 weeks.
Target Rival Walmart said solid quarterly sales Last week. The largest retailer in the country said that it already increases prices on certain articles due to prices and that more price increases were on its way this summer when the start -up season is speeding up. For example, the self -seats made in China that are currently sold for $ 350 at Walmart will likely cost customers for an additional $ 100, the managers said.
Target did not offer details on the impact of prices prices, but said that he was considering different ways to compensate for these costs.
“We are looking at the competition,” Cornell told journalists. “We provide adjustments literally every week, so we constantly adjust prices. Some increase. Some will be reduced. “
President Donald Trump threatened importation taxes on Chinese goods by 145% was reduced to 30% In an agreement announced on May 12With some of the highest break prices for 90 days.
However, the Americans already withdrew the expenses when they become more and more uncomfortable on the state of the American economy. Business Including the Mattel toy manufacturer, the manufacturer of Stanley Black & Decker tools and the Consumer Products Products Procter & Gamble announced prices or higher plans to increase prices due to the trade war that has been launched by the United States
Walmart was able to dodge some of the tariff damage that retailers suffer because the grocery store represents around 60% of its American activities. Target depends more on discretionary items such as clothing and accessories, with less than a quarter of its sales from the grocery store.
Target has reduced the number of its products in store from China to 30%, compared to 60% in 2017. The company is about to reduce this number to 25% by the end of next year, said the company. The objective shifts the supply to Guatemala and Honduras and seeks to obtain from the United States
Target is also under pressure on other fronts.
The company in January said that it Eliminate a handful of initiativesIncluding a program designed to help black employees advance their career and promote companies belonging to blacks. Conservative activists and President Donald Trump have sought to dismantle policies to In the federal government, schools and private companies.
The pastor of a Mega-Church of Georgia who led a country to a national scale 40 days Boycott of target stores in response called last month for a continuation of this effort.
The Reverend Jamal Bryant is looking for an invigorated commitment from Target on diversity, and he wants more support from the target of banks and companies belonging to blacks.
Target won $ 1.04 billion, or $ 2.27 per share, for the closed period on May 3.
Target operates nearly 2,000 stores nationally and employs more than 400,000 people.
