Sales at Target fell more than expected in the first quarter and the retailer warned they will slip for all of 2025 year as its customers, worried over the impact of tariffs and the economy, pull back on spending.

Target also said that customer boycotts have also done some damage. The company scaled back many diversity, equity and inclusion initiatives in January after they came under attack by conservative activists and the White House. Target’s retreat created another backlash, with more customers angered by the retailer’s reduction of LGBTQ -themed merchandise for Pride Month in June of 2023.

Shares fell more than 4% before the opening bell Wednesday.

Sales fell 2.8% to $23.85 billion in the quarter, and that was short of the $24.23 billion Wall Street expected, according to FactSet. Sales are also down from the $24.53 billion the company reported during the same period last year.

Target said Wednesday that it now expects a low-single digit decline in sales for 2025, and earnings per share, which excludes the gains from the litigation settlements in the first quarter, to be anywhere from $7 to $9.

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