Somehow, Target (TGT) defied US consumer trends in the first quarter.
Gas price spikes across the country have hammered shoppers’ wallets and driven inflation higher
Consumer sentiment has plunged, while interest rate cut expectations have dropped. One would have thought Target — with its well-documented operating struggles in 2025 — would have reported a horrid first quarter. Instead, it reported a $0.28 earnings beat on Wednesday.
Sales increased in all merchandise departments, led by beauty, hardlines, and food. Store traffic increased. The company even jacked up its full-year sales outlook and said it expects sales to increase in each quarter of the year. “No doubt there’s a lot to pay attention to there [with consumers], because the consumer’s got headwinds and some tailwinds, and so we’re paying a ton of attention to how consumers are finding value on our site and on our shelves, and some of the changes that we’ve made are with that in mind.