Target has reported a 5.7% decline in sales for Q1 2025, attributing the drop to a challenging environment marked by trade tariffs and backlash from its diversity, equity, and inclusion (DEI) policy changes. The retailer has revised its annual sales forecast to a low-single digit decline, down from a previous expectation of 1% growth. CEO Brian Cornell noted that uncertainty surrounding tariffs and consumer sentiment has impacted spending. Target is exploring options to mitigate tariff impacts, including negotiating with suppliers and sourcing more products domestically, while also facing scrutiny over its DEI policy adjustments.