Target warns about consumer spending. It’s another sign of stress on America’s economy

New York (CNN) — Target said Tuesday that consumer confidence is declining, the latest warning sign about the health of US shoppers and the economy.

The company said its sales declined in February and it expects sales to only grow around 1% this year.

In February, sales were “soft” as cold weather impacted clothing spending. But “declining consumer confidence impacted our discretionary assortment overall,” Jim Lee, Target’s chief financial officer, said in a statement.

Target also said that “tariff uncertainty” will impact its profit this quarter. But Target’s () stock rose 5% in premarket trading because investors predicted Target’s quarter would be even worse than it was.

Although Target expects those trends, which are weighing on customers’ confidence, to moderate, the company said it remains “appropriately cautious” about 2025.

This is a breaking news story and will be updated.

The-CNN-Wire