By some accounts, Target Corp.’s fourth quarter financial results were stronger than expected, but the retailer’s modest gains were overshadowed by newly enacted tariffs on Mexico and Canada.

Target on Tuesday reported $2.42 earnings per share for the quarter – notably higher than Wall Street expectations of just around $2.26 a share, according to the Associated Press. Target executives said that was a result of “stronger-than-expected topline performance, particularly in toys, electronics, and apparel.”

Traffic also ticked up 1.4% last year. Chair and CEO Brian Cornell noted that the company logged 350 million more guest trips in 2024 than in 2019.

Still, uncertainty around the future of trade with the United States’ two closest neighbors hung over Tuesday’s meeting.

“We’re expecting some outsized profit pressures in this year’s first quarter compared with the rest of the year,” said Target executive VP and CFO Jim Lee. “These include tariff uncertainty, expected start-up costs from a ramp-up in new stores and remodel projects, and the timing of certain SG&A and tax expenses within the year.”

When specifically asked about tariffs by an analyst, Cornell noted that the company has “spent a lot of time as a team talking about tariffs.”

“We’ve got a very experienced team in place,” he said. “We’ve been here before.”

Executives pointed to the company’s decreasing reliance on goods from China as one solution to tariff concerns.

“It’s important to know that around half of what we sell is made in the U.S.,” said Rick Gomez, executive VP and chief commercial officer at Target. “In terms of our own brand production, we’ve reduced what we source from China from roughly 60% in 2017 to around 30% today, and on our way to less than 25% by the end of this year.”

That does not, of course, solve for concerns about tariffs on Mexico and Canada. Speaking to CNBC, Cornell acknowledged that consumers are likely to see price increases on goods like bananas, avocados, and strawberries in a matter of days.

Target execs also noted that they will no longer be providing quarterly financial guidance. “This change reflects our expectation of continued elevated volatility, which limits the effectiveness of quarterly forecast,” CFO Lee said.

Meanwhile, many of the company’s 2024 full-year figures were largely flat. Net sales surpassed $106 billion in Target’s full 2024 fiscal year, which ended Feb. 1 of this year. That marked a decline of just 0.8%. Net earnings for last year, meanwhile, hit $4.091 billion, down by 1.1% year over year.

It’s worth noting that Target’s 2024 fiscal year had one fewer week than the prior fiscal year, which makes year-over-year comparisons a bit trickier.

All that aside, Target has big plans for the year ahead. Cornell said the company aims to open about 20 new stores this year and remodel many others. In total, the retailer plans to spend about $4 billion to $5 billion in store improvements, supply chain, and technology in 2025, he said.

Going forward, Target aims to “drive more than $15 billion in revenue growth over the next five years,” Cornell said. The company hopes to hit that figure through a mix of new partnership deals and “innovations” to its many owned brands, like Good & Gather. The retailer on Tuesday also unveiled that it has teamed up with local chef Ann Kim on a new line of Good & Gather frozen goods.