Target (NYSE:TGT) has trimmed the upper limit of its full-year earnings outlook and reaffirmed that it anticipates a sales decline in the current quarter, offering a cautious preview of consumer behavior heading into the crucial holiday shopping period.

Like other major retailers, Target continues to face a challenging backdrop shaped by sweeping U.S. tariffs and the longest federal government shutdown on record. Against this environment, many consumers have become more selective, pulling back on discretionary and big-ticket purchases.

The Minneapolis-based retailer has also been losing ground to Walmart (NYSE:WMT), which has gained momentum by expanding delivery capabilities and emphasizing everyday essentials. Operational hiccups—ranging from staffing shortages to misaligned inventory—have added pressure at Target, limiting the benefits of its online sales expansion.

During the third quarter, comparable sales—which capture both in-store and digital purchases at locations open at least 13 months—fell 2.7%. Analysts surveyed by Bloomberg had been expecting a decline of 2.06%.

E-commerce trends were somewhat positive but underwhelming: digital sales grew 2.4%, shy of Wall Street expectations for 3.45%.

One bright spot was strong performance from Roundel, Target’s in-house advertising business, which helped push quarterly earnings to $1.78 per share, topping forecasts of $1.73.

Even with that boost, Target revised its full-year adjusted earnings projection to roughly $7 to $8 per share, down from the prior $7 to $9 range. The retailer noted that this outlook excludes first-quarter legal settlement gains as well as severance and asset-related charges booked in the third quarter.

Target stock price

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