Target Warns of Q1 Profit Drop Amid Weak Sales, Outlook Flags Consumer Spending Woes

Target warned of a first-quarter profit decline due to weak February sales and consumer uncertainty. The retailer’s fiscal fourth-quarter results surpassed expectations, but sales fell 3% year-over-year, impacted by an extra week in the prior period. Target anticipates fiscal-year earnings per share in line with estimates, but sales forecasts lag behind projections. Efforts to reinvigorate sales include partnerships with Champion and Warby Parker, set to launch in late 2025.