Target Blames Boycotts and Budget Shoppers for Sales Drop, Lowers 2025 Forecast

Target just had a rough start to the year, and it’s warning that the rest of 2025 isn’t looking much better.

The company announced Wednesday that its sales fell more than expected during the first three months of the year. Customers are spending less, and Target says it’s feeling the pressure from a mix of rising costs, ongoing boycotts, and overall uncertainty about the economy.

Target brought in $23.85 billion in sales for the quarter, a 2.8% drop from the same time last year. That missed Wall Street’s expectations of $24.23 billion. The company still made a profit—about $1.04 billion—but it’s not enough to ease investor worries. Target now expects sales for the full year to go down, instead of the slight increase it predicted earlier in March.

Target’s CEO Brian Cornell said the company isn’t happy with the results and is working quickly to get things back on track. That includes trying to get more shoppers in stores or online by offering new low-priced items, like 10,000 products starting at $1 and most under $20.

One big issue is that people are just being more careful with their money. Between inflation, higher interest rates, and concerns about new import tariffs, shoppers are holding off on things they don’t absolutely need, especially clothing, home goods, and other non-essentials.

Target also admitted that the backlash from last year’s Pride Month controversy had an effect. After facing criticism for selling LGBTQ+ merchandise, the company scaled back its efforts, which then sparked more criticism from people who felt Target gave in to pressure. All that drama hurt its brand image and likely played a role in fewer people shopping with them.

Sales inside stores dropped 5.7%, while online sales actually went up 4.7%. Still, the overall number of purchases went down 2.4%, and the average customer spent 1.4% less per trip.

Target is also making changes behind the scenes. One top executive, Chief Strategy and Growth Officer Christina Hennington, is stepping down from her role. A new office led by the company’s COO will focus on making faster decisions to help get sales growing again.

Target stock fell about 3.5% after the announcement. Shares are already down more than 37% over the past year, and the company is clearly trying to figure out how to bring back the energy and appeal it once had with shoppers.