Retail giant Target Corp (TGT) saw its stock plummet over 5% in pre-market trading on Tuesday, March 4th. The sell-off came despite the company reporting better-than-expected Q4 earnings, as investors reacted to Target's warning that uncertainty around tariffs and consumer spending would weigh on first-quarter profits.

For the holiday quarter ended February 1, Target posted earnings per share of $2.41, beating Wall Street estimates of $2.25. Comparable sales rose 1.5%, boosted by an 8.7% jump in digital sales. However, the company's Q1 profit outlook disappointed the market.

In its earnings release, Target cautioned that "tariff uncertainty" would put pressure on Q1 profits. CEO Brian Cornell told CNBC that the consumer will likely see price increases over the next couple of days, as the company depends on imports from Mexico for certain product categories like seasonal produce.