The retailer told reporters that the new tariffs on imports from Mexico and Canada are "new dimensions" which could result in increased industry-wide prices for seasonal produce such as avocados.
Target also said it would move more of its sourcing for its store brands, which include All in Motion and Cat & Jack, to countries in the Western Hemisphere like Guatemala and Honduras, and away from China where 30% of those products are made. It expects to further reduce that dependence to 25% next year.
Target forecast annual comparable sales to be about flat in the year through January 2026, compared to Wall Street's expectations for a 1.86% rise.
Separately, Best Buy warned of the possibility of higher prices for American shoppers as President Donald Trump's new duties came into force.
