Target warns its operation in a “very difficult environment”

Target CEO Brian Cornell said on Wednesday that the company was struggling with a “very difficult environment” following a more milder than expected quarter and pressures on the profits that forced it to reduce its annual sales prospects.

The retail giant based in Minneapolis has attempted to stimulate traffic and return to growth, but the last three months in particular have been marked by contrary to industry winds, namely President Donald Trump’s pricing war, who threatened to increase consumers’ prices in several sectors.

The company had already warned earlier this year that there would be pressure on profits from one year to the first in the first quarter compared to the rest of the year due in part to the price uncertainty.

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To try to return to long -term profitable growth, the company has developed a new multi -year growth initiative, called Enterprise Acceleration Office and has made changes to its executive suite.

“In the first quarter, our team sailed in a very difficult environment and focused on the delivery of the exceptional assortment, experience and value that customers expect from Target,” CEO Brian Cornell said on Wednesday.

The changes, announced on Tuesday, are “intended to develop more speed and agility in the way we operate and position key capacities to stimulate profitable long -term growth”, according to Cornell.

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The initiative of the Enterprise Acceleration Office, led by Target’s operating director, Michael Fiddelke, will specifically help the company to operate more agile, “creating conditions for speed, adaptability, innovation and resilience,” said Cornell.

During the first quarter of exercise, Target said that its net sales in the first quarter were 23.8 billion dollars, down 2.8% compared to the same period a year ago and below the projection of Wall Street of 24.32 billion dollars. The profit adjusted per share was $ 1.30, which was also below Wall Street’s expectation of $ 1.63.

The Target store on the 1900 block of the script in Snellville (Google Maps / Google Maps)

Sales in open stores for at least a year decreased by 3.8% in the first quarter, although Target said that it always had healthy digital growth, led by a 36% increase in delivery the same day thanks to its loyalty program, Target Circle 360.

The objective now expects a drop in low -figure sales 2025. It expects the profit adjusted per share to be around $ 7 to $ 9 for the financial year 2025, down its previous wait from $ 8.80 to $ 9.80.

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“Although these protruding facts strengthen our confidence in the underlying health of our company, we are not satisfied with current performance and know that we have the possibility of making faster progress on our roadmap for growth,” said Cornell.

Earlier this year, Cornell was one of the heads of management who warned the consequences of slaps on the main business partners and even met Trump to discuss the current trade negotiations with other nations and the impact of prices imposed on imported products.