“As we look ahead, our continued investments in digital capabilities, stores, and supply chain combined with a focus on newness, value, speed, and reliability will further differentiate our one-of-a-kind physical and digital shopping experience.”
However, despite its strong Q4 earnings, Target expects increased financial pressure due to consumer uncertainty, a small drop in February sales and uncertainty brought by additional tariff policies.
Additionally, the cold weather affected apparel sales, and falling consumer confidence limited February sales.
Cornell added: “Looking ahead, we expect to see a moderation in this trend as apparel sales respond to warmer weather around the country, and consumers turn to Target for upcoming seasonal moments such as the Easter holiday.
“We will continue to monitor these trends and will remain appropriately cautious with our expectations for the year ahead.”
Cornell told CNBC that President Donald Trump’s 25% tariffs on Mexican goods could increase the price of produce in the upcoming days.
For the upcoming fiscal year 2025, the company expects net sales to grow by 1% and an adjusted earnings-per-share of between $8.80 and $9.80.
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