Sales at Target fell more than expected in the first quarter as the retailer faced boycotts for ditching its DEI efforts and felt the impact of President Trump’s tariffs. 

Target cut its forecast for the rest of the year warning that sales would slip further as its customers pulled back on spending amid an uncertain economic environment.  

Earlier this year the company conceded to the Trump administrations attacks on diversity, equity and inclusion (DEI) initiatives by scaling back its own efforts. 

However, the retreat created a fierce customer backlash leading to store boycotts that further damaged sales. 

Sales for the company fell 2.8 percent to $23.85 billion in the quarter, Target announced on its first quarter earnings call on Wednesday.  

The results were lower than the $24.23 billion Wall Street expected, according to FactSet.

‘I want to be clear, we’re not satisfied with these results, so we’re moving with urgency to navigate through this period of volatility,’ Target CEO Brian Cornell said. 

‘We’ve got to drive traffic back into our stores or visits to our site.’ 

Target cut its forecast for the rest of the year warning that sales would slip further

Target’s CEO, Brian Cornell, warned shoppers about price changes back in March

Target’s shares dropped more than six percent on Wednesday morning and are down 40 percent over the last year. 

In response to its weak sales Target is bolstering its efforts to offer value to customers nervous about the economy. 

The retailer says it is offering 10,000 new items starting at $1 – with the majority under $20. 

Cornell joined the CEOs of Walmart and Home Depot in privately warning the White House that tariffs would lead to price hikes and empty shelves. 

In a closed-door meeting with President Donald Trump last month the CEOs warned him that his aggressive trade policy would disrupt supply chains.

Target has not yet offered specifics on tariffs impact on prices, but said that it was looking at different ways to offset those costs. 

‘We look at competition,’ Cornell said on Tuesday.

‘We make adjustments literally each and every week, so we’re constantly adjusting pricing. Some are going up. Some will be reduced.’

Target says it is offering 10,000 new items starting at $1 – with the majority under $20 

Target has not yet offered specifics on tariffs impact on prices

Target’s largest competitor Walmart confirmed last week that it would be raising prices as a direct result of Trump’s tariffs.

The grocery giant said it is passing along the ‘unprecedented’ costs of Trump’s trade war on to consumers. 

Walmart has already been steadily raising some of its prices as suppliers pass on their own higher costs.  Rainey said bananas now cost 54 cents a pound, up from 50 cents — an eight percent jump. 

Retail analysts say that may not sound like much, but if similar increases hit other imported essentials — from produce to clothing, electronics, and home goods — shoppers will feel the pinch fast.