Target Corporation (NYSE: TGT) saw its stock price plummet by 5.11% in the pre-market trading session on Tuesday, March 4th, 2025. The retailer's shares faced significant selling pressure following its cautious outlook for the first quarter, citing concerns over tariff uncertainty and weak consumer demand.
While Target reported better-than-expected fourth-quarter results, with earnings per share of $2.41 beating analysts' estimates of $2.25, the company warned that "tariff uncertainty" would put pressure on its first-quarter profit. President Donald Trump's administration imposed new tariffs on imports from Canada, Mexico, and China, which took effect on March 4th, raising concerns about potential cost increases and margin pressures for retailers like Target.
In addition to tariff concerns, Target also cited weakness in consumer spending, particularly in discretionary categories like apparel and home furnishings, as a factor that could weigh on its performance in the current quarter. The company's Chief Financial Officer, Jim Lee, noted that cold weather and cautious consumers weighed on sales in February, making the outlook for the first quarter even tougher.
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