In May, McMillon warned of tariff-driven price hikes for a wide range of goods that includes food, toys and electronics. Trump publicly criticized Walmart for saying it would hike prices, calling on the company to “eat the tariffs.”

For Walmart, Target and Tapestry-owned Coach, importing goods early and having merchandise in warehouses before tariffs took effect have helped them curb the hit from higher rates.

Target also imports about half of its merchandise, compared to roughly 33% at Walmart, so it needs to raise prices at almost double the rate of Walmart to mitigate the tariff impact, Bank of America analyst Robert Ohmes said in a report this week.

Telsey Advisory raised the firm’s price target on Walmart (WMT) to $118 from $115 and keeps an Outperform rating on the shares. Telsey expects Walmart will remain a market share gainer in the retail industry and is encouraged by the company’s expanded vision beyond retail and e-commerce,

Target (NYSE: TGT) has done a great deal to ruin its own business. Most of the problems were management mistakes, which hurt earnings. However, management likes to say the retail market was challenging.

Walmart, Target, Home Depot and Lowe’s earnings reveal how tariffs are raising costs, reshaping pricing and pressuring profits in 2025.

The two retail giants are capitalizing on sustained investment in their technology foundations even as they face economic headwinds.

Walmart's results WMT.N on Thursday show U.S. consumers across the spectrum are still flocking to the retailer's stores despite economic headwinds, but shares dipped as the company's margins ebbed and inventory costs rose.

It didn’t have to be this way. At the start of his tenure, Cornell, who the company announced yesterday will step down as CEO on February 1, was an outsider unafraid to move fast and break things. He had been CEO of a big PepsiCo unit, Michaels Stores, and Sam’s Club before that.

Target needs a hard reset on strategy, Wall Street believes. And new CEO Michael Fiddelke may not be the person to do it.