Target (NYSE:TGT) reported disappointing first-quarter results and slashed its full-year guidance, triggering a sharp selloff that sent shares down more than 7% interest-day today.

The retailer posted adjusted EPS of $1.30 for the quarter, well below the $1.65 analyst consensus. Revenue declined 2.8% year-over-year to $23.85 billion, also missing estimates of $24.35 billion.

Comparable sales dropped 3.8%, driven by a 5.7% decline in in-store sales, partly offset by a 4.7% increase in digital sales. The company cited a "highly challenging environment" as the key driver behind the weak results.

Looking ahead, Target now expects a low-single-digit decline in full-year sales and adjusted EPS in the range of $7.00 to $9.00—down sharply from its previous guidance of flat-to-1% sales growth and EPS between $8.80 and $9.80.

The combination of a Q1 miss and lowered outlook signals ongoing pressure on consumer spending and highlights the difficulties facing big-box retailers in navigating a sluggish demand environment.