Target has revised its sales forecast downward, attributing the adjustment to ongoing tariff uncertainties and consumer backlash following the company's rollback of diversity, equity, and inclusion (DEI) initiatives.

Target, one of the largest retailers in the United States, has revised its sales forecast downward, citing ongoing tariff uncertainties and consumer backlash following the company's rollback of diversity, equity, and inclusion (DEI) initiatives as major factors contributing to its weak performance. The company's sales in the first quarter fell nearly 3% compared to the year-ago period, missing Wall Street's expectations and marking the third consecutive quarter of decline.Transactions across Target's stores and website dipped by 2.4%, while the average amount customers spent during their online and in-store visits decreased by 1.4%. The company's CEO, Brian Cornell, attributed the weak performance to the economy, but acknowledged that Target has struggled to recapture its "cheap chic" reputation and fan following.In an effort to turn around its results, Target has announced the creation of a new office, the Enterprise Acceleration Office, which will focus on simplifying company operations, using technology in new ways, and speeding up growth. The office will be led by Chief Operating Officer Michael Fiddelke, who will oversee efforts to improve the company's performance.The company has also announced leadership shakeups, including the departure of Chief Legal and Compliance Officer Amy Tu and Chief Strategy and Growth Officer Christina Henningon. Henningon, who was a key presenter on some of the company's earnings calls, had been widely considered a potential successor to Cornell as CEO.Target's revised sales forecast is a significant departure from its previous guidance of net sales growth of about 1%. The company now expects a low-single digit decline in sales this fiscal year, compared to its previous forecast. Adjusted earnings per share, excluding gains from litigation settlements, are expected to be in the range of $7 to $9, down from the range of $8.80 to $9.80 previously anticipated.The company's shares dropped more than 6% in premarket trading following the announcement, and have fallen more than 37% in the last year. Target's struggles to regain its footing in the competitive retail landscape have raised concerns about the company's long-term prospects.