12:21 PM EDT, 05/14/2025 (MT Newswires) -- Target's ( TGT ) fiscal first-quarter results will likely fall well short of Wall Street's projections as the retailer grapples with a weak spending backdrop that could prompt a downward revision to its full-year guidance, Oppenheimer said in a client note on Wednesday.

The company is scheduled to release its first-quarter results on May 21. Oppenheimer is now projecting Target's ( TGT ) earnings per share of $1.14, down from its previous estimate of $1.37. Analysts are expecting $1.69, according to the brokerage.

Oppenheimer now assumes a 4% decline in comparable sales, compared with a 2% drop previously expected. The Street is anticipating a 1.2% decrease, according to Oppenheimer analysts, including Rupesh Parikh.

"Directionally consistent with management's cautious commentary in March, we expect a challenged (first-quarter) delivery reflecting topline headwinds and company specific expense pressures," Parikh wrote. The brokerage's updated forecasts reflect "incremental pressures in discretionary categories and beauty, along with potential headwinds related to boycotts."

The boycotts came after Target's ( TGT ) previous decision to scale back its diversity, equity and inclusion initiatives.

The company may cut its 2025 EPS outlook to at least $7 from a range of $8.80 to $9.80, Parikh said, pointing to "an even more challenging" first half than previously expected.

"Amidst potentially greater than planned top-line and margin pressures, we will be focused on incremental cost savings opportunities to mitigate profit headwinds," he wrote.

Target ( TGT ) said in March that it was anticipating "meaningful" year-over-year profit pressure in the first quarter relative to the rest of the year amid uncertainties around consumer spending and US President Donald Trump's tariff policy.

The US and China have agreed on a 90-day suspension of reciprocal duties. The two countries had been in a trade war since Trump's announcement of sweeping new tariffs early last month. Trump previously paused certain levies on non-retaliating countries.

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