09:08 AM EST, 03/04/2025 (MT Newswires) -- Target ( TGT ) reported better-than-expected fiscal fourth-quarter results on Tuesday, but the retailer said it expects uncertainties related to consumer spending and tariffs to weigh on its profit in the ongoing three-month period.

The company's adjusted earnings fell to $2.41 a share for the quarter ended Feb. 1 from $2.98 the year before, but topped the FactSet-polled consensus of $2.26. Sales moved down to $30.92 billion from $31.92 billion last year, but came in ahead of the Street's view for $30.78 billion.

Comparable sales grew 1.5%, in line with the average analyst estimate, as the number of transactions increased by 2.1%. "Our team grew traffic and delivered better-than-expected sales and profitability in our biggest quarter of the year," Chief Executive Brian Cornell said in a statement. "Results were led by strong performance in beauty, apparel, entertainment, sporting goods and toys."

The retailer anticipates "meaningful" year-over-year profit pressure in the first quarter of fiscal 2025 relative to the rest of the year due to ongoing consumer uncertainty, a "small" decline in last month's sales, uncertainties related to US President Donald Trump's tariff plan and the expected timing of certain costs. Shares of the company were down 3.9% in premarket activity.

Trump's previously announced 25% tariffs against Canada and Mexico go into effect on Tuesday, while the US government reportedly doubled its levy on Chinese imports to 20% from 10%.

Sales in February were soft as unfavorable weather across the US weighed on the company's apparel sales, while declining consumer confidence impacted its overall discretionary assortment, Chief Financial Officer Jim Lee said. Target ( TGT ) did see a "record performance" around Valentine's Day, according to Lee.

"Looking ahead, we expect to see a moderation in this trend as apparel sales respond to warmer weather around the country, and consumers turn to Target ( TGT ) for upcoming seasonal moments such as the Easter holiday," Lee added. "We will continue to monitor these trends and will remain appropriately cautious with our expectations for the year ahead."

For fiscal 2025, the company expects adjusted EPS to be in a range of $8.80 to $9.80, compared with the $8.86 logged in the prior year. The Street is looking for non-GAAP EPS of $9.27. The retailer also forecasts sales growth of about 1%, while comparable sales growth range is expected to be flat. The market's current view is for sales of $109.02 billion and a same-store sales increase of 1.6%.

"This will likely be the company's third year in a row of flat/negative (comparable sales) and we continue to think the company may eventually be forced into sizable price investments in an effort to claw back market share," Truist Securities said in a Tuesday client note.

Target's ( TGT ) sales edged down 0.8% to $106.57 billion in fiscal 2024, while comparable sales inched 0.1% higher.