NATIONAL NEWS – Target’s earnings crash in fourth quarter analysis, largest since the pandemic

Laila Kirkpatrick, Staff Writer

Target warned Tuesday that it is expecting a “meaningful” drop in first-quarter profit compared to its profits a year ago. Target is currently dealing with rampant levels of, “ongoing consumer uncertainty”, soft sales, and concerns about tariffs. While the first three months of a year tend to be slow for companies, this year has reportedly been slower for companies like Target, Walmart, and e.l.f. Cosmetics. These weak forecasts and a sharper decline in consumer spending in January are the largest drop in consumer confidence since February 2021. 

Some of the issues are deemed as self-inflicted, especially for brands like Target that have removed or limited their DEI policies. In a statement, Jim Lee, Target’s financial chief called February sales, “ soft” and “declining consumer confidence.” He also said that cold weather was a reason for a decline in apparel sales. Lee went on to say, “We expect to see a moderation in this trend as apparel sales respond to warmer weather around the country, and consumers turn to Target for upcoming seasonal moments such as the Easter holiday.” Lee said that Target will continue to monitor these trends and they will remain appropriately cautious in their future expectations.