Tariffs Take Toll on Target's Holiday Season Sales and Profits
Target reported strong fourth-quarter profits but warned that tariffs and other costs would put pressure on its earnings in 2025. The retailer beat estimates, however, and shares rose slightly before the opening bell. Despite a decline in sales revenue, comparable sales rose 1.5% during the quarter, higher than the previous quarter's gain.
- The escalating trade tensions between the US and its trading partners will likely have a ripple effect on consumer spending habits, potentially leading to a prolonged period of caution among retailers.
- How will Target's decision to maintain its price points in the face of rising costs impact its competitiveness in the market, particularly as it navigates a potential economic downturn?