But the Minneapolis company on Tuesday offered a strong annual profit outlook that was better than Wall Street had projected. It also said it believes net sales will grow every quarter this year.

Target also said comparable store sales rose to start the current quarter.

Shares rose about 1.5% before the opening bell.

The company earned $2.30 per share, or $1.05 billion, for the three-month period ended Jan. 31. That compared with $2.41 per share, or $1.10 billion, a year earlier. Adjusted earnings per share for the most recent quarter was $2.44.

Sales fell 1.5% to $30.45 billion in the latest period. For the full year, sales fell nearly 2% to $104.78 billion.

Analysts had expected $2.16 per share on sales of $30.46 billion, according to a FactSet survey.

Comparable sales – sales in established stores and online channels – fell 2.5%, followed by a 2.7% decline in the fiscal third quarter. The latest numbers mark 11 quarters out of the past 13 that Target has posted either declines or flattish growth for this measure.

The target performance highlights the challenges faced by the newcomer CEO Michael Fiddelkea 20-year veteran of the company, who replaced longtime CEO Brian Cornell last month.

Fiddelke is expected to reveal details about his plans to turn Target around Tuesday at the company’s annual meeting in Minneapolis. Investors are hungry for a return to Target’s former dominance of affordable chic for which it earned the nickname “Tarzhay” in years past.

Fiddelke has replaced Target’s hometown of Minneapolis as a front line in President Donald Trump’s campaign to crack down on illegal immigration. Some of the company’s stores have become flashpoints of a pushback against US Immigration and Customs Enforcement. The company is facing pressure to take a public stance against immigration control.

Even before the immigration battle, Target faced protests and boycotts in the company’s decision that restore its diversity, equity and inclusion initiatives. Critics believe this is a betrayal of Target’s philanthropic commitment to fighting racial disparities and promoting progressive values ​​in liberal Minneapolis and beyond.

That’s in addition to a volatile economic and political environment fueled by an aggressive trade campaign under Trump. The White House is now seeking a global tariff of 15%, after beating the US Supreme Court many of the far-reaching taxes on imports he imposed last year.

While the pace of inflation has chilledconsumer prices have increased by about 25% in the last five years. U.S. companies are facing a bleak view of American households being hurt, and the Trump administration is trying to work around the Supreme Court’s decision to keep its duties in place.

And Target customers were offended by what they saw as unkempt and cluttered stores with missing merchandise.

As the company’s nearly 2,000 store locations have become delivery hubs for online operations, customers say the shopping experience inside stores has suffered with staff fulfilling digital orders rather than stocking aisles.

Target is also facing tougher competition from Walmart, which increased his attention to fashion and other things. As more Americans sell because of inflation, Walmart gained market share, especially among households with annual incomes above $100,000.

Joe Feldman, a senior managing director and the assistant director of research at Telsey Advisory Group, believes that shoppers are boycotting Target’s withdrawal from DEI and the lack of a strong stance against ICE’s reduction in sales. But he said in general, Fiddelke seems willing to make changes to improve his operations.

Fiddelke na reshuffled Target’s leadership teamincreased spending on store staff and made cuts to distribution facilities and regional offices, according to a memo sent to employees in February.

The company also creates store label brands such as a home goods brand called Threshold. It announced a merchandise collaboration with Roller Rabbit, a brand known for its 1960s-inspired silhouettes and colorful playful prints. The collection of clothing, pajamas and accessories is expected to make its debut at Target this month for a limited time.

Tuesday’s report offered some hopeful signs for business. Target said sales and customer traffic picked up in the last two months of the quarter. And it saw growth in sales of food and beverages, beauty and toys for the most recent quarter.

Target said it expects net sales for the year to increase 2%, which means it expects sales to reach $106.88 billion. That was slightly above analysts’ expectations of $106.7 billion. The target also expects earnings per share to be in the range of $7.50 to $8.50. Analysts had expected $7.30 per share for the year, according to analysts polled by FactSet.