Target slashed its annual sales forecast on Wednesday, after a surprisingly sharp fall in quarterly same-store sales, as customers pulled back on discretionary purchases due to ongoing worries about inflation and the economy due to U.

Target Corp. cut its sales forecast following a sharp pullback in spending and a hit from tariffs, boycotts and consumer confidence.

Target slashed its annual sales forecast on Wednesday, after a surprisingly sharp fall in quarterly same-store sales, as customers pulled back on discretionary purchases due to ongoing worries about inflation and the economy due to U.S. President Donald Trump’s trade war.

The discounter announced on Wednesday that sales 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.

Retailers have been treading carefully around the question of price increases and import taxes since Trump slammed Walmart last weekend.

Target cut its sales forecast following a weaker-than-expected quarter and now expects net sales to decline by a low single digit this year, down from previous guidance for an increase of about 1%. Comparable sales dropped 3.

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Wall Street futures headed lower after a major U.S. retailer blamed its grim forecast on tariff concerns and oil prices rose.