Target Q1 2025 Earnings Report

Introduction to Target’s Earnings Report

A view of a Target store on March 5, 2025 in Novato, California.
Justin Sullivan
Target will report its fiscal first-quarter earnings Wednesday, as the Minneapolis-based cheap chic retailer tries to get back to growth.

Expected Earnings and Revenue

Here’s what Wall Street is expecting for the discounter, according to a survey of analysts:

• Earnings per share: $1.64 expected
• Revenue: $24.32 billion expected

Retailer Updates and Challenges

Target’s earnings report will follow updates from other retailers, including Walmart and Home Depot. Both of the big-box retailers reaffirmed their full-year outlooks when reporting quarterly earnings. Yet the two companies diverged with how they will manage higher costs from tariffs. Walmart warned that it will have to raise prices for customers as soon as later this month because of the duties. Home Depot, on the other hand, said it isn’t planning to hike prices.

Target’s Challenges

For Target, however, tariffs are not the only challenge. The discounter’s annual revenue has been roughly flat for four years in a row. Sales have been weaker in many of the discretionary categories that the retailer is known for, such as home decor, as consumers are selective and cautious about spending. And the company has faced backlash from shoppers — and pressure from activists — for rolling back key diversity, equity and inclusion initiatives.

Company Expectations

Target said in February that it expected "meaningful year-over-year profit pressure" in its first quarter compared with the rest of the year because of softer sales in February and uncertainty around consumer sentiment and tariffs.
The company’s expectations are low for the fiscal year, too. Target said it expected net sales to grow by around 1% and comparable sales, a metric that takes out one-time factors such as store openings and closings, to be roughly flat. Target said it expected adjusted earnings per share to range from $8.80 to $9.80 and for its operating margin rate to modestly increase compared with full-year 2024.

Conclusion

Target’s upcoming earnings report will provide insight into the company’s progress in addressing its challenges and achieving its expectations. The report will be closely watched by investors and analysts, who will be looking for signs of growth and improvement in the company’s financial performance.

FAQs

Q: What are the expected earnings per share for Target’s fiscal first quarter?
A: $1.64
Q: What is the expected revenue for Target’s fiscal first quarter?
A: $24.32 billion
Q: What are some of the challenges facing Target?
A: Tariffs, weaker sales in discretionary categories, and backlash from shoppers and activists.
Q: What are Target’s expectations for the fiscal year?
A: Net sales to grow by around 1%, comparable sales to be roughly flat, and adjusted earnings per share to range from $8.80 to $9.80.