Sales and profits slipped for Target during the crucial holiday quarter as customers held back on spending and the company said there will be “meaningful pressure” on its profits to start the year because of tariffs and other costs.

Target (TGT) posted better-than-expected fourth-quarter results, although it warned that the uncertainty around tariffs would weigh on current-quarter results. The company reported fourth-quarter adjusted earnings per share (EPS) of $2.

Target Corp. posted better-than-expected fourth quarter earnings Tuesday, but warned customers that price increases from tariffs put in place by President Donald Trump will likely arrive within the coming days.