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Target Corporation released its financial results for Q1 2025, reporting net sales in Q1 of $28.8 billion, down 2.8% from Q1 of 2024 due to a decrease in merchandise sales.
Comparable store sales decreased 3.8% in the first quarter, reflecting a 5.7% decline in stores-originated comparable store sales and comparable digital sales growth of 4.7%. Main drivers of the change in comparable store sales for Q1 2025 were the number of transactions decreased 2.4% and the average transaction amount was down 1.4%.
Target reported net earnings of $1.04 million, a 10% increase from the first quarter of 2024.
“In the first quarter, our team navigated a highly challenging environment and focused on delivering the outstanding assortment, experience and value guests expect from Target,” says Brian Cornell, Target Corporation chair and chief executive officer. “While our sales fell short of our expectations, we saw several bright spots in the quarter, including healthy digital growth.”
Targets guidance for fiscal 2025 changed slightly following Q1 2025. The company now expects a low-single digit decline in sales and adjusted earnings per share are expected to be around $7.00 to $9.00.
During the Target Q1 2025 earnings call yesterday, Cornell noted the digital growth seen in Q1 was primarily driven by Target’s same-day delivery services.
“Despite softer-than-expected sales and profit pressures in Q1, we saw momentum in key areas and made progress in further enhancing the shopping experience,” Cornell says.
