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Target Faces Sales Decline but Continues Expansion
Target Corporation (NYSE: TGT) is grappling with a 3.8% drop in comparable sales for the fiscal first quarter, which ended on May 3, 2025. Physical store sales fell by 5.7%, while total sales decreased by 2.8%. Despite these challenges, Target plans to open nearly 50 new stores across the U.S., building on its current nearly 2,000 locations.
In contrast to declining sales, Target reported a 13.6% year-over-year increase in operating income and a 4.7% rise in digital sales for the same period. The company’s same-day membership sales surged by 35%, indicating strong customer loyalty. Additionally, Target has a consistent dividend history, having raised its dividend for 54 consecutive years, currently yielding 4.3%.
The company’s ability to bounce back hinges on economic factors such as interest rates and consumer sentiment as it navigates challenges related to shoppers prioritizing essentials over discretionary spending.
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