Shares of Target Corp (NYSE:TGT) fell sharply on Wednesday, dropping nearly 8% despite the retailer posting stronger-than-expected fiscal first-quarter results, raising its full-year sales outlook, and reporting improved margins.
The stock later trimmed some losses and was down 4.2% at the time of publication.
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The selloff underscored growing investor concerns about the strength of U.S. consumer spending, particularly as elevated Treasury yields and broader economic uncertainty continue to pressure consumer discretionary stocks and ETFs.
Target reported adjusted earnings of $1.71 per share, topping analyst estimates of $1.46, while revenue rose 6.7% year over year to $25.44 billion. Comparable sales increased 5.6%, digital sales climbed 8.9%, and operating margin expanded to 4.5% from 3.7% a year earlier.
