Minneapolis – Total home sales at Target were substantial in Q1, ringing in at more than $3.2 billion, but the trajectory continued downward.
First quarter sales in the retailer’s Home Furnishings & Décor segment have steadily dwindled since the Q1 boom in 2020. For the recent first quarter, the segment’s sales decreased 8.5% year-over-year, down $299 million compared the same period in 2024, according to Target’s 10Q filing with the SEC.
Total company sales during the period were down 2.8%.
The Home Furnishings & Décor segment as listed in the filing encompasses bedding and bath, home décor, school/office supplies, storage, small appliances, kitchenware, greeting cards, party supplies, furniture, lighting, home improvement, and seasonal merchandise.
Results for the period ended May 3 followed on the heels of a tough year for Target’s home business. The retailer shed $1 billion in home furnishings sales in 2024, its third consecutive contraction in full-year home sales volume.
Still, the size of Target’s overall home business remains considerable. In the first quarter, Target’s home segment generated nearly $1 billion more in sales than the HomeGoods U.S. operation and came in five times larger than Macy’s/Bloomingdale’s combined $608 million in home sales. The amount of home sales Target generated in the first 3 months of the fiscal year were 53% higher than the volume of home sales Burlington reported for all of 2024.
See also:
- Target CEO: Hiking prices will be “the last resort”
- Target overhauls leadership structure, now expects FY sales slump
Turning around home segment growth in 2025 will face steep challenges. After a soft first quarter, Target last month cut its sales outlook for the full year, pointing to tariff uncertainly and souring consumer confidence.
The company is also moving to “right-size” store-wide inventory after ending Q1 with inventories up 11%. Those actions include incremental markdowns and receipt adjustments during Q2. Target may also push back the timing on taking in deliveries.
