Target Corporation ( TGT ) shares are trading lower on Thursday.

In fact, many retail and discount store shares are trading lower after Walmart Inc. ( WMT ) issued soft first-quarter guidance.

Walmart ( WMT ) issued guidance for the 2026 fiscal year first quarter, expecting adjusted earnings per share between 57 cents and 58 cents, versus analysts' estimate of 64 cents. The company also anticipates a net sales increase of 3% to 4%.

Additionally, Walmart ( WMT ) expects a 0.5% to 2.0% increase in adjusted operating income. The company said its guidance for net sales and adjusted operating income reflects factors like its acquisition of VIZIO and the challenge of lapping a leap year.

Stock markets dropped in morning trading, with all major US indices falling, The Guardian reports.

The report notes that Walmart’s lackluster forecast signals that US consumer spending is slowing down. It cites Brian Mulberry from Zacks Investment Management, a Walmart ( WMT ) investor, who pointed this out as a warning.

Also Read: What’s Going On With Costco Shares Thursday?

For the past two years, high interest rates and ongoing inflation have slowed U.S. consumer spending, per a report by Reuters. Additionally, President Donald Trump’s new tariff on Chinese goods, along with potential tariffs on products from India, Mexico, and Canada, has added uncertainty to the economy.

Thus, Target’s share price could be impacted by Walmart’s soft guidance, which signals slowing consumer spending and weaker retail performance.

Other competitors of Walmart ( WMT ), Costco Wholesale Corporation ( COST ) stock is trading lower by 2.17%, Dollar General Corporation ( DG ) shares are down 1.60%, Amazon.com, Inc ( AMZN ). stock is trading lower by 1.78%, and Dollar Tree, Inc. ( DLTR ) is down over 5%.

As Walmart ( WMT ) sets the tone for the sector, its outlook may cause investors to reassess the sector’s overall growth prospects.

Price Action: TGT shares are trading lower by 1.52% to $128.77 at last check Thursday.

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