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Target (TGT) Q4 2025 earnings

admin — Wed, 04 Mar 2026 05:32:19 +0000

MINNEAPOLIS — Target on Tuesday posted another quarter of falling revenue and customer traffic at its stores, though its shares rose as the retailer’s earnings beat estimates and it said it is poised to end its sales slump.

The big-box retailer, which is in the middle of a turnaround effort, said sales and traffic trends picked up in the last two months of the holiday quarter. Then sales turned positive year over year in February, which is the beginning of the current quarter.

Speaking to CNBC on Tuesday, Target CEO Michael Fiddelke said the company is “out of the gates strong this year.” While he noted that one month of growth “does not make a trend,” he said the February sales increase gives him “confidence” the company is moving back to growth.

For the current fiscal year, Target expects net sales to rise about 2% compared with the prior year and anticipates that metric will grow in every quarter of the year. That net sales growth for the year would reflect a small increase in comparable sales, the retailer said. The company added that its new stores and nonmerchandise sales, such as advertising and membership, would contribute more than 1 percentage point of growth.

Sign at the entrance to a Target store in Venice, Florida.

Erik Mcgregor | Lightrocket | Getty Images

Target said it expects full-year adjusted earnings per share to range from $7.50 to $8.50. Its adjusted earnings per share for the most recent full year were $7.57.

Fiddelke, who stepped into the company’s top role on Feb. 1, will try to persuade Wall Street that the retailer is gaining sales momentum at an investor meeting on Tuesday morning at Target’s Minneapolis headquarters.

Here’s what the company reported for the fiscal fourth quarter compared with Wall Street’s estimates, according to a survey of analysts by LSEG:

Earnings per share: $2.44 adjusted vs. $2.16 expected
Revenue: $30.45 billion vs. $30.48 billion expected

Target shares closed more than 6% higher on Tuesday.

The big-box retailer missed Wall Street’s revenue expectations for the fourth quarter, despite analysts already anticipating weaker sales. Its quarterly revenue dropped about 1.5% from $30.92 billion in the year-ago period.

For four quarters in a row, customer traffic across the company’s stores and website has fallen.

Target’s net income for the three-month period that ended Jan. 31 fell to $1.05 billion, or $2.30 per share, compared with $1.10 billion, or $2.41 per share, a year earlier. Excluding one-time items, including legal settlement gains and business transformation costs, Target’s adjusted earnings per share were $2.44.

Target is trying to end several years of disappointing results driven by a mix of company missteps and economic factors. Its annual sales have been roughly flat for four years, after a significant jump in annual revenue during the Covid pandemic.

Shares of the company have dropped by nearly 32% over the past three years, as of Monday’s close, though they have risen nearly 16% so far this year.

As it tries to turn its business around, Target cut 1,800 corporate jobs in October, marking its first major layoff in a decade.

Some of Target’s customers told CNBC they are shopping elsewhere after noticing changes like sloppier stores and lackluster merchandise, or objecting to the company’s social stances, like its rollback of major diversity, equity, inclusion initiatives. The company acknowledged backlash to its DEI decision had hurt sales and led to market share losses to competitors.

Target’s challenge with attracting shoppers has persisted. Comparable sales, an industry metric that takes out short-term factors like store openings and closures and is also called same-store sales, decreased 2.5% year over year in the fourth quarter. That reflected a 3.9% comparable sales decline at Target’s stores and a 1.9% increase across Target’s website and app.

Transactions across Target’s stores and website fell by 2.9% year over year. The average amount that customers spent during those transactions grew 0.4% year over year.

In an interview with CNBC in the fall at Target’s headquarters, Fiddelke said he would prioritize regaining the company’s reputation for style and design, improving the customer experience, and using technology to boost its performance.

He echoed those key goals on Tuesday, telling CNBC the company wants to prioritize “incredible product and [an] incredible experience.”

Last month, Target also announced it would invest more in store labor and cut about 500 roles at distribution centers and regional offices to try to address shoppers’ concerns about out-of-stocks, long checkout lines and other store conditions. However, the company declined to say much more it would spend.

“We know we have to equip our teams to have the resources they need to deliver an incredible store experience,” he told CNBC on Tuesday.

At an investor presentation Tuesday, Chief Financial Officer Jim Lee said that Target will step up its spending this year to support the company’s turnaround. He said capital expenditures will total about $5 billion this fiscal year, an increase of more than $1 billion from last fiscal year.

That spending will go toward Target’s supply chain, technology and investment in stores. It plans to open more than 30 new stores and remodel more than 130 stores this fiscal year.

Target is known for selling clothing, home goods, seasonal items and other trend-driven discretionary merchandise that customers often buy on impulse when browsing the aisles on a “Target run.” Yet higher prices of food, utilities and other necessities, fueled by inflation and tariffs, has dampened U.S. consumers’ willingness to buy items that aren’t on the shopping list.

Fiddelke told CNBC he does not see anything “remarkably different” about shopper behavior now relative to recent quarters.

He also did not say how he expects President Donald Trump’s new 10% global tariff to affect the company after the Supreme Court struck down broader duties last month. He told CNBC “we’ll find out together what the next year holds on the tariff front.” Fiddelke also did not say whether Target would take legal action to get tariff refunds, as companies like FedEx and Costco did.

Target’s results in recent years have been at odds with those of retail rivals like Walmart, Costco and T.J. Maxx’s parent, TJX, which have posted stronger sales results, attracted shoppers across incomes, and seen growth in categories like apparel and home goods, areas where Target has struggled.

Along with offering products like groceries, clothing, and home goods, Target is trying to sell more advertisements and membership subscriptions to customers. The company’s nonmerchandise sales jumped more than 25% in the fourth quarter, driven by membership revenue more than doubling from a year ago, double-digit percentage gains in its ads business, Roundel, and over 30% growth in its third-party marketplace.

Same-day deliveries through Target Circle 360 grew more than 30% year over year. The subscription service costs $99 per year or $10.99 on a monthly basis.

The post Target (TGT) Q4 2025 earnings appeared first on Our Story Insight.

Target (TGT) Q3 2025 earnings

admin — Wed, 19 Nov 2025 11:33:01 +0000

The Target bullseye logo is seen on the outside of its store at the Lycoming Crossing Shopping Center.

Paul Weaver | Lightrocket | Getty Images

Target posted a drop in quarterly sales and lowered its full-year profit guidance on Wednesday as the big-box retailer saw choppy spending and shoppers hunting for value.

Despite its ongoing struggles, Target stuck by its sales guidance for the all-important holiday season, saying it expects sales to decline by a low single-digit percentage in the fourth quarter. It said it expects adjusted earnings per share for the year to come in between $7 and $8, lowering the high end of its previous range of $7 to $9. Its new range would come in lower than last year, when adjusted earnings per share were $8.86.

On a call with reporters, incoming CEO Michael Fiddelke declined to say when he thinks the company’s sales would turn positive again, but said Target is making progress.

“We are focused every day on making the right investments and the right decisions to get Target back to growth as quickly as possible,” he said.

Fiddelke, who is Target’s chief operating officer and former chief financial officer, will step into the CEO role on Feb. 1. The company announced in August that he would succeed longtime CEO Brian Cornell.

He said Target will step up investment next year to try to turn around its stores and boost sales by increasing capital expenditures to $5 billion, a 25% year over year jump.

Here’s what Target reported for the three-month period that ended Nov. 1 compared with what Wall Street expected, based on a survey of analysts by LSEG:

Earnings per share: $1.78 adjusted, it was not immediately clear how that compared to the $1.72 expected
Revenue: $25.27 billion vs. $25.32 billion expected

Target’s sales have been roughly stagnant for four years as it faces stiffer competition and has grown weaker in some of the areas that set it apart in the past, including its eye-catching merchandise, its well-organized stores, and its friendly and helpful customer service. Some customers also boycotted the retailer after it rolled back key diversity, equity and inclusion programs, a dynamic that Target blamed in part in May for its weaker sales results.

Shares of the company have tumbled, too. As of Tuesday’s close, Target’s stock has fallen about 67% since the company’s all-time high in late 2021 and dropped about 35% so far this year.

Fiddelke laid out three priorities on the day he was named Target’s next CEO: strengthening Target’s reputation as a retailer with stylish, well-designed merchandise, providing a more consistent shopping experience online and in stores, and using technology to move the business forward.

At the time, he said he wouldn’t wait to start making changes.

Last month, Target announced it would cut 1,800 corporate jobs — its largest layoff in a decade. It has taken steps to sharpen its merchandise and get back its fashion sense, including sending its designers to rodeos and ski lodges for inspiration. And it’s tweaked its online fulfillment strategy at stores to try to free up employees’ time to stock shelves and assist customers.

On a call with reporters about third-quarter results, Fiddelke pointed to a few other moves the company has made. He highlighted Target Trend Brain, a generative artificial intelligence-powered tool that helps the company’s designers and merchants identify what colors and styles are popular. It also is using synthetic audiences, AI models that simulate how real customers might respond to products or marketing campaigns, before launch.

Yet Target’s challenges in winning over shoppers persisted in the most recent quarter.

Customers made fewer trips across Target’s stores and website and spent less during those visits. Traffic dropped by 2.2% and average transaction amount fell by 0.5% year over year.

Comparable sales, an industry metric that excludes one-time factors like store openings and closings, decreased 2.7%. Digital sales grew 2.4%, driven by more than 35% growth of same-day deliveries.

Target’s fiscal third-quarter net income dropped about 19% to $689, or $1.51 per share, from $854 million, or $1.85 per share, in the year-ago period. Revenue fell from $25.67 billion in the year-ago quarter. Excluding one-time costs such as severance packages, Target’s adjusted earnings per share was $1.78.

Digital sales increased 2.4% year over year, driven by more than 35% growth in same-day deliveries.

Fiddelke told reporters that Target saw “some volatility” in the quarter. Sales in both August and October were about flat as customers shopped for back-to-school and Halloween, but September sales fell about 4% year over year.

Chief Commercial Officer Rick Gomez said consumer behavior didn’t change from the previous quarter, with shoppers “stretching budgets and prioritizing value through spending where it matters most, especially in food, essentials and beauty.”

Gomez and Fiddelke acknowledged other challenges specific to the third quarter, such as the pause of Supplemental Nutrition Assistance Program, or SNAP, benefits during the government shutdown.

To capture the attention and dollars of lower-income shoppers, Target last week cut prices on 3,000 food and household products. Target has also set the price of some key holiday items so they feel like bargains, such as ornaments starting at $1, candles starting at $5 and throw blankets starting at $10, Gomez said.

Target is also trying to stand out with more products that customers can’t find elsewhere. It has 20,000 new items in its holiday assortment, more than double the year-ago holiday season, with over half of those only available at Target, Gomez said. In a bid to bring in customers beyond merchandise, it teamed up with Starbucks for an exclusive drink that shoppers can’t find elsewhere, a Frozen Peppermint Hot Chocolate frappuccino.

Target tends to see stronger sales during holidays and seasonal changes. Yet Gomez said even during those moments this year, customers have been selective. At Halloween, for example, Gomez said shoppers made “trade offs,” as the company saw stronger candy sales and weaker decor sales.

Gomez said he expects that pattern to hold during the holiday season.

“We think the consumer will prioritize what goes under the tree versus what goes on the tree,” he said.

The post Target (TGT) Q3 2025 earnings appeared first on Our Story Insight.

Target (TGT) Q1 2025 earnings

admin — Wed, 21 May 2025 08:56:06 +0000

A view of a Target store on March 5, 2025 in Novato, California.

Justin Sullivan | Getty Images

Target will report its fiscal first-quarter earnings Wednesday, as the Minneapolis-based cheap chic retailer tries to get back to growth.

Here’s what Wall Street is expecting for the discounter, according to a survey of analysts by LSEG:

Earnings per share: $1.64 expected
Revenue: $24.32 billion expected

Target’s earnings report will follow updates from other retailers, including Walmart and Home Depot. Both of the big-box retailers reaffirmed their full-year outlooks when reporting quarterly earnings. Yet the two companies diverged with how they will manage higher costs from tariffs. Walmart warned that it will have to raise prices for customers as soon as later this month because of the duties. Home Depot, on the other hand, said it isn’t planning to hike prices.

For Target, however, tariffs are not the only challenge. The discounter’s annual revenue has been roughly flat for four years in a row. Sales have been weaker in many of the discretionary categories that the retailer is known for, such as home decor, as consumers are selective and cautious about spending. And the company has faced backlash from shoppers — and pressure from activists including the Rev. Al Sharpton — for rolling back key diversity, equity and inclusion initiatives.

Target said in February that it expected “meaningful year-over-year profit pressure” in its first quarter compared with the rest of the year because of softer sales in February and uncertainty around consumer sentiment and tariffs.

The company’s expectations are low for the fiscal year, too. Target said it expected net sales to grow by around 1% and comparable sales, a metric that takes out one-time factors such as store openings and closings, to be roughly flat. Target said it expected adjusted earnings per share to range from $8.80 to $9.80 and for its operating margin rate to modestly increase compared with full-year 2024.

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