Target’s Q1 home sales contract for 4th year in a row

Minneapolis – Whole house gross sales at Target had been substantial in Q1, ringing in at greater than $3.2 billion, however the trajectory continued downward.

First quarter gross sales within the retailer’s Home Furnishings & Décor section have steadily dwindled for the reason that Q1 growth in 2020. For the current first quarter, the section’s gross sales decreased 8.5% year-over-year, down $299 million in contrast the identical interval in 2024, in accordance with Goal’s 10Q submitting with the SEC.

Whole firm gross sales in the course of the interval had been down 2.8%.

The Residence Furnishings & Décor section as listed within the submitting encompasses bedding and bathtub, house décor, college/workplace provides, storage, small home equipment, kitchenware, greeting playing cards, get together provides, furniture, lighting, house enchancment, and seasonal merchandise.

Outcomes for the interval ended Could 3 adopted on the heels of a troublesome 12 months for Goal’s home-based business. The retailer shed $1 billion in house furnishings gross sales in 2024, its third consecutive contraction in full-year house gross sales quantity.

Nonetheless, the scale of Goal’s general home-based business stays appreciable. Within the first quarter, Goal’s house section generated practically $1 billion extra in gross sales than the HomeGoods U.S. operation and got here in 5 instances bigger than Macy’s/Bloomingdale’s mixed $608 million in house gross sales. The quantity of house gross sales Goal generated within the first 3 months of the fiscal 12 months had been 53% increased than the amount of home sales Burlington reported for all of 2024.

See additionally:

• Target CEO: Hiking prices will be “the last resort”
• Target overhauls leadership structure, now expects FY sales slump

Turning round house section development in 2025 will face steep challenges. After a smooth first quarter, Target last month cut its sales outlook for the complete 12 months, pointing to tariff uncertainly and souring shopper confidence.

The corporate can be shifting to “right-size” store-wide stock after ending Q1 with inventories up 11%. These actions embody incremental markdowns and receipt changes throughout Q2. Goal may additionally push again the timing on taking in deliveries.