Target Corporation is projecting a decline in annual sales and profits for 2025 as the retail giant struggles with fallout from its decision to end its diversity, equity, and inclusion (DEI) programs, pressure from new tariffs, and organized boycotts by Black consumers and media. The company reported first-quarter net sales of $23.8 billion, a 2.8% drop from the same period last year, and revised its full-year outlook downward, now forecasting a low single-digit decline in sales and adjusted earnings per share of $7 to $9.

Adjusted earnings for the quarter fell nearly 36% year-over-year to $1.30 per share, down from $2.03, when excluding a one-time $593 million pre-tax gain from a credit card interchange fee settlement. “Our team navigated a highly challenging environment and focused on delivering the outstanding assortment, experience, and value guests expect from Target,” Chairman/CEO Brian Cornell said during an investor call. “While our sales fell short of our expectations, we saw several bright spots in the quarter, including healthy digital growth, led by a 36% increase in same-day delivery through Target Circle 360, and our strongest designer collaboration in over a decade with Kate Spade, for Target.” Cornell also acknowledged the backlash, saying: “We’re not satisfied with current performance and know we have opportunities to deliver faster progress on our road map for growth. This morning, we announced the establishment of a multi-year acceleration office led by Michael Fiddelke and several leadership changes. These steps forward are intended to build more speed and agility into how we operate and position key capabilities to drive long-term profitable growth.”

Yet those changes are landing amid heightened scrutiny and organized resistance. In addition to financial pressures from tariffs, Target is now the focus of a national selective buying campaign launched by the Black Press of America after the company announced in January that it would phase out its DEI commitments. In a joint op-ed made available to millions of readers, Dr. Benjamin F. Chavis Jr., president/CEO of the National Newspaper Publishers Association (NNPA), and Bobby R. Henry, Sr., NNPA Chair and publisher of the Westside Gazette, issued a searing indictment of the company’s direction. “As far back as October 2024, we sent a formal letter to Target CEO Brian Cornell detailing the company’s persistent refusal to invest in Black-owned newspapers and media outlets. That letter was met with silence. Silence, in the face of truth, is complicity. By ignoring our appeal, Mr. Cornell and Target have made clear that they do not value the voices, institutions, or the economic power of Black America,” they wrote. “Let us be clear. We will not shop where we are disrespected. Our dollars will not finance our own marginalization.” Tanya Milton, vice president and advertising director at The Savannah Tribune said the boycott is making an impact and that Target’s disengagement speaks volumes. “Their continued silence could mean they’re hoping not to draw attention to their losses,” Milton said. Asked how Black consumers should interpret the company’s decision to end its DEI programs, she said: “If they just got on board three years ago, then it’s not a big deal to them. Black consumers shopped there before they were onboard.”

She also addressed the broader consequences of Target’s failure to invest in Black-owned media. “Being visible helps to make your brand a household name,” she said. Target’s troubles continue to ripple through Wall Street. Shares fell nearly seven percent after the earnings announcement and are down 33% year-to-date. Despite its digital gains and successful designer collaborations, Target reported a comparable store sales decline of 5.7%, even as digital sales grew 4.7%. Cornell told investors the company has “many levers” to mitigate the effects of tariffs, and that raising prices would only come as a “very last resort.” Still, for many, the damage is already done. “We therefore announce the continuation and intensification of the Target national selective buying campaign,” Chavis and Henry said. “We call upon all freedom-loving people from across all segments of society who believe in economic justice, media equity, and corporate accountability to join us.”