Rocky Balboa wasn’t kidding when he said the world ain’t all sunshine and rainbows.
No, it ain’t, and, as Sylvester Stallone’s legendary movie pugilist tells us, “it’s a very mean and nasty place.”
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People in the retail business are learning just how mean and nasty the world has become as they contend with President Donald Trump’s tariff agenda.
As retailers start to report quarterly earnings, the London Stock Exchange Group said that 34 of them issued negative preannouncements, while only four issued positive EPS guidance so far for the quarter.
Of those retailers offering revenue guidance, 47 warned of disappointing results, the firm said, while seven said revenue might be better than expected.
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“This stands out, as we usually have at least 10 positive preannouncements for both earnings and revenue,” LSEG said. “About 80% of retailers discussed the impact of tariffs during their last earnings calls.”
Retailers are also citing a slow start to the year, concern about higher prices, challenging macroeconomic conditions and a cautious consumer as contributing factors, the firm said.
Trump to meet with Target and other retailers
Target (TGT)  has been getting pummeled for quite a while now. The Minneapolis company’s shares are down 33% since January and off 46% from a year ago.
In the face of tariffs, Target and Walmart (WMT)  were reportedly haggling with suppliers over proposed price hikes, according to Reuters.Â
The outcome of their talks will determine when and by how much merchandise prices rise — and even which products retailers will keep on store shelves.
Major retailers say they can’t just raise retail prices without losing market share and alienating American shoppers, Reuters reported last month.Â
Their stance is leading to acrimonious discussions about pricing with suppliers, whose costs have shot up following Trump’s tariffs.
Trump is scheduled to meet with Target, Walmart and other retail industry executives to discuss the impact of the tariffs on their businesses, Bloomberg reported.
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The discussion comes amid a 90-day pause in Trump’s higher tariffs on trading partners, except China. Dozens of foreign leaders and business executives are using the pause to negotiate relief from the levies.
The duties have rattled consumers worried about higher prices, creating anxiety for companies that source goods from outside the country, particularly from China.
In addition, Target has seen its stock price and foot traffic slump after the retailer said in January it was canceling its diversity, equity, and inclusion program
Rev. Jamal Bryant of Atlanta says he doesn’t plan to end his calls for a nationwide boycott of Target by black consumers anytime soon, according to Fox News.
The pastor’s 40-day “fast” of the big-box chain was supposed to be finished on Easter Sunday, but the Atlanta religious leader said during his holiday service that Target’s lack of action to organizers’ demands means that the pressure should continue.
Value investor Price cites Target cash flow
Citi lowered its price target on Target to $95 from $120 and kept a neutral rating on the shares, according to The Fly.
The investment firm reduced estimates on April 21 to reflect higher costs from tariffs and pressure on sales from a weakening macroeconomic environment
On April 16, Goldman Sachs downgraded Target to neutral from buy with a price target of $101, down from $142.
Explaining the downgrade, Goldman Sachs cited concern about seeing a recovery in growth for discretionary categories, more downside risk in earnings than upside given possible sales deleverage and tariff risk, and recent data indicating Target’s sales may be slowing.
The firm said that uncertainty about the tariffs and the inflation outlook is taking a toll on consumer sentiment and expectations.
In 2025 through the close of trading April 17, Target shares were off 31%.
This all may sound like Target is definitely on the ropes, but like the Italian Stallion tells us, “it ain’t how hard you hit; it’s about how hard you can get hit and keep moving forward.”
TheStreet Pro’s Paul Price sees some possibilities amid all the difficulties.
“The pain of severely beaten-down share prices has a flip side,” he said in his recent column. “It makes for tremendous bargains for those investors brave enough to actually buy low.”
Related: Target CEO makes bold move to dodge big boycott from shoppers
Yes, but can you tell if a particular stock is down for the count or is a great rebound candidate?Â
“Analyze the facts, apply reasonably conservative assumptions, and buy stocks which appear to offer exceptional upside potential,” he said.Â
“Here is my take on Target: It is a widely held, institutional name with estimated fiscal 2025 revenues approaching $108 billion.”
Price, a veteran value investor, says that the chain’s per-share sales have never been higher and cash flow per share is nearly as high as all prior years except for the stimulus-fueled numbers of FY 2021. Ditto for projected earnings per share.
“Today’s low price on TGT reflects tariff-related uncertainties, which, like Covid’s, are likely to be resolved much sooner than most people expect,” Price said.
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