Target CEO Brian Cornell on Wednesday warned of "massive potential costs" due to tariffs, saying the company would raise prices as a "very last resort."

"The difficulty level has been incredibly high given the rates we're facing and the uncertainty about how these rates in different categories might evolve," Cornell said. "We're focused on supporting American families and how they manage their budgets."

The retail giant marked the latest major company warning of possible tariff-driven price hike hikes, following similar warnings from Walmart and Best Buy.

Target reported a drop in sales over its most recent quarter, faulting consumer jitters over tariffs as well as a boycott over a rollback of its diversity, equity and inclusion policy.

Sales declined 2.8% over the first three months of 2025 compared to the same period last year, the company said. That performance fell short of what analysts expected.

In the first quarter, our team and our business faced an exceptionally challenging environment," Cornell said.

This is a developing story. Please check back for updates.