President Donald Trump’s tariffs hike against Canada, China and Mexico are just starting to ripple through retail.

Sales and profits slipped for Minneapolis-based Target​ during the crucial holiday quarter as customers held back on spending and the company said there will be "meaningful pressure" on its profits to start the year because of tariffs​ and other costs.

CEO Brian Cornell said Target relies heavily on Mexican produce during the winter months, and the tariffs could force the company to raise prices.

Target Corporation this week outlined for the financial community how ongoing investments will aim to accelerate its strategy and drive billions of dollars of profitable sales growth across its multi-channel business by 2030. The plans outlined include: Bringing consumers an on-trend and affordable assortment packed with style, newness and value

Q4 2024 Earnings Call Transcript March 4, 2025 Target Corporation beats earnings expectations. Reported EPS is $2.41, expectations were $2.27. John Hulbert: Good morning, everyone, and welcome to our 2025 Financial Community Meeting.

While sounding bullish notes for the year ahead, the company said February sales showed a small decline while tariff uncertainty was expected to pressure profits “meaningfully” in the first quarter.

Target Chief Executive Brian Cornell said its shoppers would likely see price hikes in its stores "over the next couple of days."

The company also cut its long-term outlook at its New York City investor day, much to the frustration of analysts. Target sees long-term EPS growth of a mid-to-high-single-digit percentage, down from high single digits previously. The Street had been modeling for around 10% growth.