Target's (NYSE: TGT) troubles have continued thus far in 2025. The retail giant came into the year reeling from market share losses to Walmart, weakness in discretionary categories, and problems with theft -- and many of those challenges have only gotten worse.

Tariffs have put pressure on both consumer spending and its imports, and the company even faced a boycott earlier this year in response to its decision to end its DEI practices. As a result, its financial performance has continued to lag with falling sales and profits, and its guidance has also disappointed the market.

According to data from S&P Global Market Intelligence, the stock was down 27% through the first half of the year. You can see from the chart below that Target slumped through much of the first quarter due to the issues above. It then missed out on the market recovery that came later after the 90-day tariff pause was announced.

Target stock keeps falling

Target's woes this year seemed to begin around the time it said it would roll back DEI programs, including ending an initiative to carry more products from Black and minority-owned businesses. That move led to boycotts against the company that began in February, and seemed to be having at least a modest effect on the business. The company also acknowledged that its reputation has been damaged by the boycotts.

In its fourth-quarter earnings report, which came out in March, the company reported comparable sales growth of 1.5%. Adjusted earnings per share (EPS) fell from $2.98 to $2.41, which still beat estimates at $2.25. Despite the beat, the stock still dropped on the update, as management warned about higher prices and its guidance called for flat top-line growth this year.

The stock then plunged after the "Liberation Day" tariffs were announced. After a modest recovery, the stock fell on its first-quarter earnings report, as comparable sales dropped 3.8% and adjusted EPS tumbled from $2.03 to $1.30. Target also cut its EPS guidance range for the year to $7.00-$9.00.

What's next for Target

Target announced something of a turnaround plan in its first-quarter earnings report, saying that it was establishing a "multi-year acceleration office" and making several leadership changes to make faster decisions and return the company to long-term profitable growth.

Target still has turnaround potential, but it's clear why the stock has continued to lag.