Target's sales fell 3.8% in the last quarter, significantly worse than analysts' expectations of a 1.08% decline. The company attributes this downturn to a combination of customer backlash against its diversity, equity, and inclusion (DEI) policy changes and the impact of rising tariffs. As a result, Target has lowered its sales outlook for the fiscal year, anticipating a low single-digit decline. CEO Brian Cornell acknowledged the challenges posed by declining consumer confidence and the uncertainty surrounding tariffs, which could lead to increased costs for the company.

In response to these challenges, Target has established a multi-year 'Enterprise Acceleration Office' aimed at revitalizing growth and has reshuffled its executive team. Cornell emphasized that while price increases are a last resort, they may be necessary to offset tariff impacts. The company is also exploring diversifying its supplier base and adjusting product offerings to mitigate costs. Target's stock has seen a significant decline, dropping 37% over the past year, reflecting investor concerns about its market position and future profitability.