Target warns its operating in ‘highly challenging environment’

The goal was absent from Wall Street’s expectations and reduced its guidance for this year on Wednesday, as it struggled with uncertainty in the customs tariff, which led to a decline in consumer confidence and a violent reaction due to its decline in its efforts in its diversity and property rights (Dei).

The retail giant, who is based in Mininabolis, is trying to try to raise traffic and return to growth in consecutive quarters, but CEO Brian Cornell described the environment over the past three months in particular as “very difficult.”

The company has reported more softening revenues than expected and continuous profit pressure during the quarter of the opposite winds of industry, which is the war of president Donald Trump, which threatened to raise the prices of consumers across multiple sectors.

The company has already warned earlier this year that there will be profit pressure throughout the year in the first quarter for the remainder of the year, in part due to the uncertainty in the customs tariff.

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“In the first quarter, our team moved to a very difficult environment and focused on providing the various militant, expertise and valuable guests from the goal,” CEO Brian Cornell said in a statement on Wednesday.

To try to return to the long -term profitable growth, the company has developed a new multi -year growth initiative, called the Foundation’s acceleration office, and made changes to its executive wing.

The changes, announced on Tuesday, aim to “build more speed and lightness in how we work, and to develop major possibilities to push profitable growth in the long run,” according to Cornell.

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Cornell said that the initiative of the Foundation’s acceleration office, led by the Executive Director of Operations, Michael Vidlek, will specifically help the company to operate more clearly, “create conditions for speed, ability to adapt, innovation and flexibility.”

During the first fiscal quarter, Target reported that its sales in the first quarter were 23.8 billion dollars, a decrease of 2.8 % from the same period of the past a year and under the overthrow of Wall Street of $ 24.32 billion. The profits of the equivalent of the share amounted to $ 1.30, which were also less than the 1.63 dollar Wall Street forecast.

The target announced the leadership changes on Wednesday. (Google Maps / Google Maps)

Sales in stores decreased for at least a year by 3.8 % in the first quarter. The amount that customers spend during shopping in the store and online also decreased by 1.4 %, although Target said he was still getting healthy digital growth, led by a 36 % increase in delivery on the same day through its loyalty program, Target Circle 360.

TARGET now expects a decrease in low numbers in sales in the fiscal year 2025, a decrease from its previous forecast for the growth of net sales of about 1 %. It expects that approximately $ 7 to $ 9 for the fiscal year 2025 will range from its previous expectations from 8.80 dollars to $ 9.80.

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“We are not satisfied with the current performance and we know that we have opportunities to make faster progress on our growth map for growth,” said Cornell.

Earlier this year, Cornell was among the CEOs who warned of the consequences of slapping the customs tariff on the main commercial partners and until Trump met to discuss continuous trade negotiations with other countries and the impact of definitions imposed on imported products.

Meanwhile, the retail seller was competing with the provinces after it announced in late January that it had been declining efforts of diversity and the rights of stocks and inclusion (Dei) after Trump’s executive order to review such initiatives, including stopping the external surface that focuses on diversity, and rename the “diversity of suppliers” “sharing the supplier”. The company also said that it concluded its three -year goals in Dei, ending its initiatives and changing racist stocks (Reach) in 2025, as planned.