The retailer’s sales fell short of expectations, and it slashed its full-year financial forecast, citing a “challenging” economy and backlash over its pullback from diversity policies.

Target now expects a “low single-digit [percentage] decline” in sales for the fiscal year; it previously forecast 1 percent growth.

The retail giant cut its full-year outlook as executives conceded that the reaction to its updates on “belonging” is creating headwinds. Sales at retail giant Target took a dive during the first three months of 2025 and executives have indicated that boycotts over its rollback on diversity,