Texas Border Business
Texas Border Business
Target Corporation reported first-quarter fiscal 2025 results showing a decline in adjusted profitability despite a year-over-year increase in reported net earnings. According to the company’s release, GAAP net earnings were $1.036 billion, up 10% from the same period last year, with diluted earnings per share (EPS) of $2.27 compared to $2.03 in 2024. However, when excluding a one-time legal settlement gain, adjusted EPS fell to $1.30 from $2.03. Net sales declined 2.8% to $23.8 billion, while comparable sales decreased 3.8%, including a 5.7% drop in store sales partially offset by a 4.7% increase in digital sales. Target cited “declining consumer confidence,” “uncertainty around tariffs,” and “backlash over reductions in diversity, equity, and inclusion (DEI) initiatives” as contributing factors.
Walmart Inc., in contrast, reported growth in its first quarter of fiscal 2026, which ended April 30, 2025. The retailer stated that revenue reached approximately $165.6 billion on a constant currency basis, with profit rising about 3% to $7.3 billion. Adjusted EPS was roughly $0.61, and total revenue increased approximately 2.5% year-over-year. Walmart noted that “price increases are inevitable” due to tariff impacts and highlighted strong gains in e-commerce and membership, with over 15 million Walmart+ members.
Costco Wholesale Corporation delivered solid results for its first quarter of fiscal 2025, which ended November 24, 2024. Net sales were $60.99 billion, up 7.5% from the prior year, and total revenue, including membership fees, reached $62.15 billion. Net income was $1.798 billion, or $4.04 diluted EPS, compared to $1.589 billion, or $3.58 per share, in the year-earlier period. Comparable sales growth, excluding gasoline and foreign exchange effects, was 7.2% in the United States on an adjusted basis, and e-commerce sales rose 13.2%.
The TJX Companies, parent of TJ Maxx, Marshalls, and HomeGoods, reported first-quarter fiscal 2026 net sales of $13.1 billion, a 5% year-over-year increase. Comparable store sales rose 3%, at the high end of management’s forecast. Net income was $1.0 billion with diluted EPS of $0.92, slightly above the prior year’s $0.93. The company maintained its full-year guidance for comparable sales growth of 2% to 3% and EPS between $4.34 and $4.43, noting it was “well-positioned” to navigate tariff-related pressures.
These results illustrate diverging trends in the U.S. retail sector, with Walmart, Costco, and TJX all reporting sales growth, while Target faced declining revenue and adjusted earnings. Competitive dynamics remain intense, with leading retailers emphasizing price competitiveness, membership programs, and digital sales growth as key strategic levers in a tariff-sensitive environment.
Follow the links below for verification sources:
Target (Q1 FY2025)
Performance: Struggled with adjusted earnings and comparable sales; cited consumer sentiment, tariff uncertainty, and DEI backlash.
Verification Links:
Walmart (Q1 FY2026)
Performance: Modest growth in revenue and adjusted EPS; strong e-commerce and membership performance; tariff pressures likely to raise prices.
Verification Links:
Costco (Q1 FY2025)
Performance: Solid sales and earnings growth; strong comps; double-digit e-commerce gains.
Verification Links:
TJX Companies (Q1 FY2026)
Performance: Healthy sales growth; maintained guidance; strong margins aligned with consumer trends.
Verification Links:
