Target likely can’t wait to close the book on last year as it looks to turn the page and return to growth.
The bullseye retailer on Tuesday reported a 1.7% decline in total sales for the last fiscal year, which ended January 31, with a 1.5% drop for the quarter. That’s including the addition of a batch of new stores and growth in its digital business.
“I’m incredibly proud of how our team navigated through a challenging year in 2025,” CEO Michael Fiddelke said in a statement. “Our team is firmly focused on writing Target’s next chapter of growth.”
Adjusted fourth quarter earnings per share of $2.44 exceeded the Bloomberg analyst consensus of $2.13, but the outlook of less than a percentage point increase in comparable sales and first quarter EPS of $1.30 were less than Wall Street estimates.
While the fourth quarter’s results extend a three-year streak of flat or declining comparable sales, the company said traffic and transactions started to pick back up in December and January, and are on track to deliver net sales growth in every quarter of 2026.
“Target saw a healthy, positive sales increase in February, serving as an important milestone on our path back to growth this year, and reinforcing my confidence in the momentum we’re building and the future we’re creating together,” Fiddelke said.
Analysts said ahead of the earnings release that Fiddelke and his team have their work cut out for them.
“Time is Target’s greatest adversary,” Mizuho analyst David Bellinger said in a weekend note ahead of the release.
“While senior management is taking the necessary steps to re-position the business, others are not standing still,” he added, referring in particular to Walmart, which has been gaining momentum as Target struggles.
“Ultimately, the company needs to show how it can better compete and define its place in the market,” UBS analyst Michael Lasser said in a note leading up to the results.
Fiddelke is set to unveil his larger turnaround strategy Tuesday morning at Target’s headquarters in Minneapolis. One month into his new role, the CEO has said he’s focused on four key priorities: improving the merchandising, elevating the shopping experience, investing in tech, and supporting workers and communities.
The company also said it was seeing strong recent performance in non-merchandise sales, including its Roundel ads business, Target Plus membership, and same-day delivery services.
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